India factory growth hits two-month high
Indian manufacturing expanded in October as the purchasing managers index climbed to 58.4 from 57.7 the previous month, according to HSBC data released on Friday. The S&P Global report showed growth stemmed from stronger domestic orders and controlled input expenses following goods and services tax reductions. Factory output and new business exceeded average levels recorded from January through July, despite continued weakness in export demand due to American trade barriers.
The composite output index measuring both manufacturing and services fell to 59.9 from 61.0 in September but remained above the 50-point threshold separating expansion from contraction. HSBC Chief India Economist Pranjul Bhandari said tax cuts supported consumer spending while limiting cost pressures for producers. Export orders and business confidence remained below earlier levels as tariffs weighed on overseas sales. Manufacturing strength signals sustained industrial momentum heading into the year’s final months.
