India's Manufacturing PMI Slipped To Eight-Month Low At 55.5 In October

India's manufacturing activity in October slipped to the lowest in eight months, revealed a survey by the credit rating agency S&P Global. The Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, declined to an eight-month low of 55.5 in October compared to 57.5 in September.

A private survey showed that India's manufacturing growth slowed for a second consecutive month in October as demand eased, which alongside bigger increases in the cost of raw materials had an impact on business confidence.
With this, October became the 28th straight month that the index remained above the 50-mark separating expansion from contraction.

According to the report, the Indian manufacturing industry continued to expand at the start of the third fiscal quarter, the latest PMI data from S&P Global showed. However, the growth of several measures subsided as demand for certain types of products faded.

"There were substantial, albeit slower, increases in total new orders, production, exports, buying levels, and stocks of purchases. Hiring activity faded and business confidence slipped to a five-month low. Meanwhile, cost pressures intensified, while output price inflation receded," revealed the survey.

October data signaled a deceleration in growth since September. Anecdotal evidence suggested that subdued demand for certain products and fierce competition stymied the upturn. The rate of expansion was the softest in a year, with consumer goods especially affected.

PMI gives an idea about the direction in which a country's economy is moving and helps economists estimate the manufacturing activity in the country. PMI is one of the closely watched data and helps in predicting the economic health of a country.