Domestic demand accelerates India's Manufacturing PMI to 55.9 in October

The manufacturing PMI for India increased to 55.9 in October, from 53.7 in September, recording a second consecutive increase. The 2.2pts increase can also be attributed to the onset of the festive season in India. The growth in manufacturing is likely to persist in November owing to the festivals, but at the same time, global commodity prices and coal shortage pose downside risks that may hamper its momentum.

The components of manufacturing PMI also underwent a substantial increase in October, in comparison with September. The output index expanded from 55.6 in September to 59.1 in October. Similarly, the new orders index grew to 58.7 in October, by 3.6pts. The increase in new export orders was less pronounced, from 51.5 in September to 52.6 in October, suggestive that the growth in total orders was mostly from the domestic front. Quantity of purchases also continued to grow, by 2.3pts, to 58.9 in October. From September to October, stocks of purchases rose by 2.9pts to 59.2, while stocks of finished goods reduced from 44.5 to 43.5.  

The indicator is updated monthly, available from November 2018 to October 2021. The data reached an all-time high of 58.9 in October 2020 and a record low of 27.4 in April 2020.

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Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q3 2021 report.