India manufacturing activity rebounds in November

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India manufacturing activity rebounds in November

India's manufacturing PMI increased the fastest in 10 months in November. Manufacturing activity went up to 57.6, a jump from 55.9 in October. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers Index PMI showed the strongest improvement in the health of the sector for ten months, according to IHS Markit India in a report.

The manufacturing sector saw the fastest upturn in nine months in November, as sales accelerated and the production sector saw the fastest increase in nine months, according to IHS Markit India. Since data collection began nearly 17 years ago, input buying was scaled up by companies that led to the second-quickest accumulation of stocks of purchases.

After three consecutive months of downturn, the hiring activity saw an improvement.

There was little change in the purchase price inflation from October's high due to supply-demand mismatches and increased transportation costs.

In November sales were boosted by increased demand, improved market conditions and successful marketing, according to manufacturers. Factory orders increased for the fifth consecutive month and at a pace that was the fastest since February, it said. The domestic market, cited as the main source of sales growth, said the data was cited as the main source of sales growth.

Companies increased production volumes during November due to the pick up in demand, according to the report. Output went up sharply and at the fastest rate in nine months. Post-production inventories of raw materials and semi-furnished items increased, but inventories of semi-furnished items decreased as orders were fulfilled from stocks.

The latest results showed that cost inflationary pressures remained high amid transportation issues and difficulties among suppliers to source raw materials. It added that input prices increased at a rate similar to October's 92 month high.

The overall level of positive sentiment fell to a 17 month low, although manufacturers remained positive towards growth prospects. It concluded that companies were concerned that inflationary pressures could dampen demand and restrict output in the year ahead.