India Reports Fastest Growth In Manufacturing Activity (PMI) For 2018 In Nov

On a back of an increase in domestic and foreign demand, India's manufacturing activity expanded at its fastest in November for the year 2018, a private monthly report showed.

Nikkei's manufacturing purchasing manager's index (PMI), that is compiled by IHS Markit, grew 54.0 in November when compared to 53.1 in October. The manufacturing PMI has been holding strong above the 50-point threshold for the 16th straight month. When PMI is above the 50-point threshold, it indicates growth and vice-versa.

The survey results have reassured views that the business activity in the country has been recovering from slow down and risks from inflation pressure would mean the Reserve Bank of India may not need to tighten the monetary policy again.
The new orders sub-index, a proxy for domestic demand, grew to 55.9 in November, the highest since December 2017, encouraging firms to increase output. Foreign demand rose its quickest pace in nearly four years and optimism about future output improved from October's 20-month low.

Employment growth was above the long-term average of 50.7 in November despite a fall in the hiring pace when compared to October.

Input cost inflation was at a seven-month low in November, but stronger demand encouraged firms to raise prices at the fastest pace since February 2017.

Another report released by the CSO on Friday showed that the GDP growth in Asia's third-largest economy had slowed down to 7.1 percent for the July-September 2018 quarter from 8.2 percent in the previous quarter, owing to a slowdown in consumer spending and farm growth.