A robust demand, better market conditions, and increased hiring led to a rapid surge in manufacturing activities in November 2021. A private survey showed that manufacturing activities surged at their sharpest pace in 10 months. Input buying was ramped-up by companies thereby leading to the second-swiftest growth in stock purchases in the past 17 years.
The domestic markets were primary sources of sales growth, while initial export orders grew at a marginal pace, lower than that in October. Further, the IHS Markit India manufacturing managers’ index (PMI) increased from 55.9 in October to 57.6 in November. A score surpassing the 50 benchmark represents an expansion in the economy.
Amidst a rise in demand, various companies ramped-up production during November, while the output witnessed a tremendous surge. However, the expansion in November was merely the second in the last 20 months. The build-up of inflationary pressures and the signs of new Covid-19 waves can be a significant threat to the outlook, according to Pollyanna De Lima, Economics Associate Director, IHS Markit. The manufacturing sector shows a significant prospect of growth, however inflationary pressures remain a major concern in the year ahead.
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