PMI: India’s manufacturing sector growth hits 11-month low in November, PMI hits 56.5

New Delhi| Competitive conditions and inflationary pressures amid slow growth in orders brought India’s manufacturing sector growth to an 11-month low of 56.5 in November. This information was given in a monthly survey released.

The seasonally adjusted ‘HSBC India Manufacturing Purchasing Managers’ Index’ (PMI) stood at 57.5 in October falling to an 11-month low of 56.5 in November. Having an index above 50 under the PMI means an expansion in production activities while a figure below 50 reflects a contraction.

HSBC Chief Economist (India) Pranjul Bhandari said, ‘‘ Manufacturing sector growth rate in India stood at 56.5 in November which is slightly lower than last month, but is still under expansion.’’

Bhandari said strong broad-based international demand boosted the continued growth of the Indian manufacturing sector. However, at the same time the rate of production expansion is slowing down due to increasing price pressure.

On the domestic macroeconomic front, India’s economic growth slowed to a near two-year low of 5.4 per cent in the July-September quarter of the current fiscal year 2024-25 due to poor performance of manufacturing and mining sectors and weak consumption, according to new government data released on Friday. On the price front, Indian commodity producers have increased their selling prices the most since October 2013.

‘‘ International demand growth rate best in four months, survey says…Increases reported from Bangladesh, China, Colombia, Iran, Italy, Japan, Nepal, UK and US chap.’’ HSBC India Manufacturing PMI has been prepared by S&P Global based on responses to questions sent to purchasing managers in a group of around 400 companies.