India's manufacturing PMI falls to 54.7 in October, still in expansion

India's manufacturing PMI slipped to 54.7 in October, down from 55.1 in September, yet it stayed well above the 50‑point neutral line. Output and new orders grew, but at a slower pace than in September. Strong overseas demand lifted export orders to a six‑month high, prompting producers to boost output. Companies also raised input inventories to the biggest level in eight months, creating a buffer for possible shortages. Firms reported higher sales to Bangladesh, Canada, Indonesia, Nepal, Oman, Saudi Arabia, Sri Lanka, the U.K., the U.S. and the UAE. Factory hiring rose for a second month in a row, although the speed of job creation slowed. Business confidence slipped in September and remained below its long‑run average, with about 18 % of manufacturers expecting higher output next year and the rest staying neutral. Cost pressures eased across materials, energy and other inputs; overall input‑cost inflation fell to its lowest rate since February. Some material and energy prices rose, but overall price pressures on inputs and outputs eased slightly from the previous month. The HSBC India Manufacturing PMI is compiled by S&P Global from responses of roughly 400 purchasing managers. ## Context The PMI figure shows the sector is still expanding despite softer growth, indicating resilience in Indian manufacturing amid global volatility.