India’s private sector activity expanded at its slowest pace in six months in November as manufacturing growth slipped to a nine-month low, offsetting an uptick in services. According to HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, retreated to 59.9 this month from October’s final reading of 60.4.
Manufacturing PMI drops to 9-month
The flash India Manufacturing PMI slumped to a nine-month low of 57.4 in November from 59.2 last month. Factory production growth was the weakest since May.
GST-led boost likely peaked; sectoral softness emerging: Analyst
Rajeev Sharan, Head – Criteria, Model Development & Research of Brickwork Rating said, “India’s November flash PMI of 59.9 underscores continued expansion despite moderation from earlier highs. For credit ratings, resilient activity, strong order books, and improving employment support stable-to-positive outlooks, especially for domestic demand and infrastructure-linked issuers.”
“Manufacturing PMI, although in expansionary territory, slipped to a nine-month low of 57.4 as new orders softened and the GST-led boost possibly peaked. Emerging sectoral softness and global headwinds warrant caution, with issuer-specific fundamentals outweighing broad-based credit rating action in the near term,” he added.
