India's Manufacturing PMI Rebounds To 57.4 In October

New Delhi, Oct 25 (KNN) Manufacturing activity in India demonstrated a strong rebound in October, breaking a three-month trend of moderation, according to the latest S&P Global Market Intelligence survey.

The HSBC Flash India Manufacturing Purchasing Managers' Index (PMI) rose to 57.4 from September's eight-month low of 56.5, with manufacturers implementing the steepest price increases in more than a decade.

The services sector also displayed positive momentum, with the Flash PMI for Services Business Activity edging up to 57.9 in October from 57.7 in September.

The combined HSBC Flash India Composite PMI Output Index, which tracks both manufacturing and services sectors, strengthened to 58.6 from the previous month's 58.3, indicating sustained economic expansion.

Manufacturing establishments outpaced service providers in both output and sales growth, while also experiencing more pronounced increases in input costs and selling prices.

However, service sector firms demonstrated stronger employment growth compared to their manufacturing counterparts.

The Flash PMI findings, derived from responses representing 80% to 90% of the 400 companies surveyed in each sector, signal positive economic activity.

HSBC's Chief India Economist, Pranjul Bhandari, noted the manufacturing sector's renewed vigour, highlighting accelerated growth across multiple components following recent modest deceleration.

The expansion in new orders and export orders suggests favourable industrial production prospects for the remainder of 2024, reinforcing optimistic economic outlook.

(KNN Bureau)