India’s factory activity expanded at its fastest pace in three months in November, a private survey showed on Thursday, signalling resilient demand despite deteriorating global economic conditions as input cost inflation fell to a two-year low.

Consumer inflation in South Asia’s largest economy eased significantly in October to 6.77% from September’s five-month high of 7.41%, indicating price rises may moderate and providing some succour to manufacturers.

The Manufacturing Purchasing Managers’ Index, compiled by S&P Global, rose to 55.7 last month compared with 55.3 in October, marking the seventeenth successive month of expansion in manufacturing production across India.

The reading was comfortably above a Reuters poll median forecast of 55.0 and the 50-level separating growth from contraction.

“India’s manufacturing sector continued to perform well in November, besides heightened recession fears elsewhere and a deteriorating outlook for the global economy,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

“It was business as usual for goods producers, who lifted production volumes to the greatest extent in three months amid impressive evidence of demand resilience.”

Robust demand, particularly for consumer and intermediate goods, and marketing pushed the new orders sub-index to a three-month high.

International demand rose for an eighth consecutive month and at a similar pace to October.

Source: Livemint, dated 01/12/22