India's manufacturing industry witnessed a slowdown in the growth during the month of November, as new export orders rose at the weakest pace in over a year. A softer rise in sales also restricted growth of buying volumes and job creation, while positive sentiment towards output prospects slipped to its lowest level since mid-2022. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 56.6 in November from 59.2 in October, but it was comfortably above the neutral mark of 50.0 and its long-run average of 54.2. 

The report further said that output followed a similar trend to new orders, expanding at a sharp pace that was nonetheless the weakest since February. While new business growth and efficiency gains supported an increase among some firms, others suggested that subdued demand for some of their products constrained output levels at their units. Manufacturers in India adjusted their hiring efforts and purchasing activity in line with a slowdown in new order growth. The latter saw its weakest upturn since February. Meanwhile, employment expanded at the softest pace in the current 21-month period of uninterrupted growth.

On the inflation front, the survey report showed relatively muted cost pressures across India's manufacturing economy. The rate of inflation receded to its weakest since February. Therefore, firms were able to limit hikes to selling prices, with charge inflation retreating to an eight-month low. November data also showed an absence of pressure on the capacity of Indian manufacturers and their suppliers. Outstanding business volumes among goods producers were broadly unchanged from October, whereas vendor performance continued to improve.