Manufacturing PMI: The manufacturing sector has continued to do well in November with PMI rising to 56. After slowing a bit in October, the growth gathered pace as strengthening client demand and more favourable input supply boosted production volumes.
A reading of over 50 indicates expansion, while that of below 50 denotes contraction.
The inflationary pressure has retreated as the rise in purchase cost was modest in the month. This compared to the series of price rise that started in August 2020. Although average purchasing costs rose again, the rate of inflation eased to the lowest in the current 40-month sequence of increases.
Also Read: India's Manufacturing Activity Hits Three-Month High In August, PMI Rises To 58.6
The rise in cost has translated into increased selling prices. Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence noted that Firms' ability to secure new business, both domestically and from abroad, remained central to the success of the sector
As per PTI, the strong performance of the manufacturing sector is expected to continue in 2024 as well.