Supported by stronger contributions from three of its five sub-components - new orders, output and stocks of purchases - the headline seasonally adjusted Nikkei India Manufacturing Purchasing Managers' IndexTM (PMITM) climbed to a 22-month peak in October. Rising from 52.1 in September to 54.4, the latest reading was indicative of a robust improvement in manufacturing business conditions that was in line with the long-run series average.

Once again, consumer goods producers outperformed their intermediate and investment goods counterparts, registering stronger rates of expansion for both output and new orders. In October, output increased for the tenth straight month and at the quickest rate in nearly four years.

Survey respondents attributed the latest rise in production to strong growth of new orders. The amount of new work received by manufacturers grew markedly during October, with anecdotal evidence linking the latest rise to improved underlying demand. In fact, the rate of expansion was at a 22-month high.

Data indicated that although foreign orders contributed to the upturn in total new work, the rate of growth in new business from abroad eased to a three-month low. Outstanding business rose again during the latest survey period. The overall rate of accumulation was solid and the quickest in almost three years, with survey members reporting capacity pressures. In spite of this, businesses left employment unchanged.

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