Business News: India’s Manufacturing Sector PMI Witnesses Massive Decline in October

04 Nov, 2023 Author: Ayushee Joshi

Business News: In October, the country's manufacturing PMI fell for the second consecutive month to a low level. Furthermore, this is the lowest level in the past 8 months. The slowing of new orders has reduced output growth, resulting in an eight-month low in industrial activity in India in October. According to the survey, total new orders, output, exports, purchasing levels, and purchases increased slowly but significantly. Hiring has stalled, and company optimism has dropped to a five-month low.

Reason of The Decline

The S&P Global India Manufacturing Purchasing Managers' Index (PMI) dipped to 55.5 in October, down from 57.5 in September. This is the lowest reading in the previous eight months. The Purchasing Managers Index was at its lowest level in 5 months last month, in September. However, for the 28th consecutive month, the PMI figures for October indicated signs of improvement in overall operating conditions. An index greater than 50 implies expansion, whereas an index less than 50 suggests contraction.