Manufacturing sector growth and auto sales reported impressive growth in the month of October. The manufacturing sector growth touched a 22-month high during the month on the back of a rise in new orders, output and stocks of purchases, according to the Nikkei purchasing managers’ index (PMI) survey, reports fe Bureau in New Delhi.
As far as auto sales are concerned, though passenger cars did not post double-digit growth with Maruti Suzuki posting a low 2.2% growth as the mini car segment registered a whopping 10% decline on a yearly basis, commercial vehicle manufacturers reported strong growth. Putting Maruti’s sales in perspective, RS Kalsi, executive director, marketing and sales, said that more accurate reflection of demand is that for the festive season (August to October), where Maruti sales have grown by about 14% over last year.
On the manufacturing front, consumer goods producers outperformed their intermediate and investment goods counterparts. Buying levels grew at the strongest pace in 14 months, while stock levels rose at the fastest pace since July last year, the survey showed. However, businesses left employment unchanged.
The headline manufacturing PMI touched 54.4 in October, compared with 52.1 in the previous month. Any reading above 50 points indicates expansion, while one below that mark suggests contraction. The manufacturing PMI is a composite index comprising five individual indexes such as new orders, output, employment, suppliers’ delivery time and stock of items purchased.