India's manufacturing output improved for the 13th straight month data from HSBC PMI Manufacturing showed. "Operating conditions in India improved for the thirteenth month in a row in November, supported by stronger growth of output and new work intakes. Foreign orders and buying activity also rose during the month, while employment remained broadly stable.
However, a cautionary note was provided by survey data regarding input costs and output charges, as inflationary pressures intensifies," a Markit Release on India's HSBC Manufacturing SHOWED.
(PMI) - a composite indicator designed to give an accurate overview of manufacturing operating
conditions - reached a 21-month peak in November.
The latest improvement in business conditions was solid overall and the thirteenth in consecutive months. Consumer goods was the best performing of the broad areas monitored.
November data reinforced reports of stronger-than-expected demand, as new order growth accelerated to the quickest in 21 months. Consumer goods was again the best performing of the surveyed sub-sectors.
Similarly, foreign orders received by Indian goods producers continued to rise strongly in November. Survey respondents generally attributed growth to strengthening demand from key export clients.
Commenting on the India Manufacturing PMI survey, Pranjul Bhandari, Chief India Economist at HSBC said: "Manufacturing activity accelerated further in November led by higher output and new orders. Domestic orders saw the biggest increase, even as new export orders continued to be strong. The sharp rise in input prices was surprising, but future prints may be lower as falling commodity prices eventually lead to softer intermediate good prices. Meanwhile, the pick-up in output prices could partly be signalling some revival in pricing power among businesses. Higher output and an uptick in final prices should convince the RBI to stay on hold in the upcoming meeting."