Indian manufacturing continues to expand in Q3 FY24: Report

However, substantial, albeit slower, increases in total new orders, production, exports, buying levels and stocks of purchases were observed.

Hiring activity faded and business confidence slipped to a five-month low. Meanwhile, cost pressures intensified, while output price inflation receded, S&P Global said in a release.

Posting 55.5 in October, the seasonally-adjusted S&P Global India manufacturing PMI signalled an improvement in the health of the sector for the twenty-eighth month in a row.

The latest reading was above its long-run average of 53.9, but slipped from 57.5 in September to signal the slowest rate of expansion since February.

Output increased further at the start of Q3 FY24, stretching the current sequence of expansion to over two years. The upturn was linked by firms to positive market conditions and healthy intakes of new work.

Growth eased to an eight-month low, however, weighed by competitive pressures and weak demand at some plants.

Although a further increase in new orders was a positive development, October data signalled a deceleration in growth since September.

As was the case for total new orders, growth of international sales remained historically strong despite losing momentum in October. The rise was the weakest in four months. Those firms that experienced an increase in new orders from abroad reported gains from Asia, Europe, the Middle East and the United States.

October data pointed to sufficient capacity levels of Indian manufacturers, as backlogs of work were little-changed since September.

Concurrently, suppliers were often able to deliver inputs in a timely manner, with vendor performance being broadly stable.

ALCHEMPro News Desk (DS)