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Manufacturing activity falls to eight-month low in October as pace of new orders slow down

The India Manufacturing Purchasing Managers’ Index stood at 55.5 in October, compared with 57.5 in September, according to S&P Global. A print above 50 means expansion, while a reading below 50 indicates contraction

Our Special Correspondent New Delhi Published 02.11.23, 12:46 PM
Representational image

Representational image Sourced by the Telegraph

Manufacturing activity fell to an eight-month low in October, with new orders rising at their slowest pace in a year, a private survey showed.

The India Manufacturing Purchasing Managers’ Index stood at 55.5 in October, compared with 57.5 in September, according to S&P Global. A print above 50 means expansion, while a reading below 50 indicates contraction.

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Manufacturing activities in India decelerated in October as the slow pace of growth in new orders triggered a softer rise in output and employment

“The survey’s new orders index slipped to a one-year low, as some firms raised concerns about the current demand picture for their products,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

According to the survey, there were substantial, albeit slower, increases in total new orders, production, exports, buying levels and stocks of purchases. Hiring activity faded, and business confidence slipped to a five-month low.

“October data signalled a deceleration in growth since September. Anecdotal evidence suggested that subdued demand for certain products and fierce competition stymied the upturn,” the survey said.

On the job front, less than 4 per cent of companies hired extra staff and 95 per cent left workforce numbers unchanged. The rate of job creation was slight and the slowest since April.

On the price front, cost pressures intensified, while output price inflation receded.

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