Positive demand trends fed through to sharp expansions in sales and output, though firms indicated that growth was somewhat restricted by competitive conditions and prices pressures.
In this regard, the latest results showed that a quicker upturn in cost burdens sparked the steepest rise in selling prices in over 11 years. Falling from 57.5 in October to a joint 11-month low of 56.5 in November, the seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) signalled a softer improvement in the health of the sector. That said, the pace of growth remained above its long-run average.
Goods producers experienced a weaker, albeit still robust, upturn in new business intakes during November.
Input cost inflation intensified midway through the third fiscal quarter, reaching its highest mark since July but remaining below its long-run average.
With demand conditions remaining favourable, Indian manufacturers continued to scale up production.
Indian manufacturers purchased additional inputs for use in production processes and to place into inventories.
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Business optimism was spurred by predictions that marketing efforts and new product releases will bear fruit. Recent capacity expansion efforts and forecasts of demand strength also underpinned upbeat forecasts for output in 2025.
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