Export Orders Surge; India Manufacturing PMI Steady at 54.7

New Delhi: Export orders provided a strong lift to India's manufacturing sector in October, helping the industry maintain a healthy expansion even as overall momentum moderated slightly.

The manufacturing PMI was recorded at 54.7 in October, compared with 55.1 in September. Despite the small decline, the index stayed above the 50 level that marks expansion and remained higher than its long-term average, indicating that demand and business activity are still firm.

New export orders recorded their fastest increase in six months. Manufacturers received fresh business from several international markets, which translated into higher output and better sales for many firms.

Among the countries from which Indian companies received orders were Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, Britain, the United States and the United Arab Emirates.

Total new orders also rose strongly, although the rate of increase was slightly slower than in September, when new business had grown at its quickest pace in seven months.

Companies continued to add to their stocks of raw materials. The build-up in inventories was the fastest in eight months, reflecting concerns about global uncertainty and the need to avoid production delays caused by possible shortages.

Pressure on costs and prices eased modestly from the previous month, even though some raw material and energy costs rose. Employment continued to increase, but the pace of hiring slowed, while business confidence about the coming months weakened.

Survey respondents attributed the growth to better demand, new customers and successful promotional campaigns.