By laksh5382 
India’s business activity expanded slightly in October after slowing the previous month, led by strong demand in the manufacturing sector, as job creation grew at the fastest pace since February 2006, according to a survey.
HSBC’s Flash India Composite Purchasing Managers’ Index, compiled by S&P Global, rose to 58.6 this month from September’s final reading of 58.3, a 10-month low.
The headline index has remained above the 50 level for 39 consecutive months separating growth from contraction – the longest expansionary streak since June 2013.
HSBC Chief India Economist Pranjul Bhandari said, “India’s flash manufacturing PMI indicated that the manufacturing industry regained growth momentum in October. Several components picked up after a slight slowdown in the past two to three months.” She has come.”
“New orders and new export orders expanded rapidly, providing a good sign for industrial production for the remaining months of 2024.”
Supported by strong sales, the manufacturing index rose to 57.4 from 56.5 in September, while the core services industry reading rose slightly to 57.9 from 57.7 this month. Goods production growth was at the highest level in two months.
This is encouraging news for India’s manufacturing sector, which accounts for less than a fifth of the economy. Prime Minister Narendra Modi’s government is trying to promote goods production.
A government official recently said that since the production-linked incentive scheme was launched, the country has attracted more than $17 billion in investment, resulting in output worth about 11 trillion Indian rupees ($131 billion) and nearly One million jobs were found.
The survey also noted a rise in international demand with overall exports rising sharply in October.
This prompted companies to hire more employees and total job creation grew at the fastest pace in almost eighteen and a half years. Employment generation in the services sector was higher than that in manufacturing.
Strong demand allowed companies to pass on rising input costs to customers, while prices were rising at the fastest pace in three months. Companies reported higher prices for chemicals, eggs, meat, packaging, steel and vegetables.
“Profit margins of manufacturers are still under pressure as input price inflation continues to accelerate,” Bhandari said.
The survey showed that the business outlook for the year ahead remained mixed with manufacturers the most upbeat since July, while sentiment for services companies faded somewhat.