Despite concerns about a recession, the manufacturing sector in India produced more in November 2022 as the seasonally adjusted S&P Global Purchasing Managers’ Index (PMI) rose to 55.7 from 55.3 in October. This represents the biggest improvement in operating conditions in three months. The PMI for India in November also exceeded the long-term average of 53.7.
According to an S&P Global survey, manufacturing growth was aided by demand resilience as businesses reported the fastest increases in new orders and production in three months.
The headline PMI increased in November as a result of a greater uptick in manufacturing orders. Participants in the poll reported that strong demand and effective marketing initiatives enhanced overall sales.
As new export orders increased at the second-fastest rate since May, businesses also reported a noticeable improvement in the demand for their products internationally.
Data from November 2022 showed that manufacturing production in India had increased for the seventeenth time in a row as businesses adjusted to the rising number of new hires. The output spiked sharply, strongly, and above trend for the first time since August.
In November 2022, the consumer goods sector saw faster growth in new orders and production, while capital goods manufacturers saw slowdowns.
Midway through the third fiscal quarter of 2022, enterprises were spending more on inputs as they worked to replenish their inventories and raise their output to keep up with rising sales. November 2022 saw a significant increase in purchasing activity compared to October.
Despite strong input demand, the rate of cost inflation significantly decreased in November. The most recent increase was mild, the cweakest in 28 months, and far below its historical average.
Slower increases in production prices were made possible by low cost pressures. Because a large majority of panellists (92 percent) kept their rates the same as in October, the rate of charge inflation decreased to a nine-month low and was just marginal.
A significant rise in outstanding business levels indicates that manufacturers are still experiencing capacity challenges. Nevertheless, the pace of accumulation in November 2022 was moderate and had decreased from October 2022.
An increase in vendor performance from October to November indicated that suppliers to the Indian manufacturing sector were able to provide inputs on time.
Finally, businesses were optimistic about the demand outlook for the upcoming 12 months. They predict an increase in manufacturing quantities as a result. The mood rose to its greatest point in almost eight years.