Private sector industrial activity remains weak in the third quarter of 2024-25, with no signs of a quick recovery after a sharp decline in the previous quarter.
In July-September 2024, manufacturing growth fell to just 2.2%
HSBC India Manufacturing Purchasing Managers’ Index (PMI) showed factory activity hit an 11-month low in November.
PMI reading dropped from 57.5 in October to 56.5 in November, indicating a slower pace of growth (anything above 50 signals expansion).
Factory output grew at the slowest pace since December 2023, indicating a slowdown in production.
For the first time since August 2017, factories reported an increase in finished goods stocks.
This marks a break in a seven-year trend of declining stocks, suggesting a mismatch between production levels and demand.
New business orders and production levels grew at a slower pace, as strong competition and rising price pressures affected demand.
Exports showed a positive trend, with fresh export orders growing at the fastest rate in four months.
Goods exports surged by 17.25% in October, a 28-month high, driven by strong demand from developed markets ahead of the Christmas season.
Employment levels increased for the ninth consecutive month, but at a slower rate than in October.
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