Published: Tue, December 03, 2019
Markets | By Otis Pena

India's Manufacturing Growth Picks Up In November

India's Manufacturing Growth Picks Up In November

Markit's Purchasing Managers' Index (PMI) of manufacturing companies rose to 47.5 last month from 46.8 in October.

Despite the slower pace of decline, the index stayed below the 50.0 threshold that separates contraction from expansion for a seventh month, marking the longest such run since a nine-month stretch from June 2012 to February 2013. Coupled with rising domestic demand, total new orders rose strongly in November "with a number of firms citing firmer underlying demand conditions", according to the survey, though the reading dipped slightly from October when the growth rate was the highest in almost six years. "But for now, firms are not confident enough about the business outlook to hire more workers; the employment balance remained marginally below 50 for the eighth consecutive month". The reading marks the second expansion this year.

"Downturns in output and new orders continued amid a renewed contraction in exports".

In terms of company size, the PMI of large companies was the only one which exceeded 50, reading 50.9, up 1.0% from Oct. PMI of medium- and small-sized companies increased to 49.5 and 49.9, respectively.

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"Stronger domestic and foreign client demand supported a quicker improvement of the Greek manufacturing sector in November", said Sian Jones, IHS Markit economist.

In November, "business confidence remained subdued, as concerns about policies and market conditions persisted, and their willingness to replenish stocks remained limited", wrote Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin.

That is largely because the global economy continues to decelerate and as real progress in the disruptive US-China trade war remains elusive.

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