India’s manufacturing activity maintained a robust expansion in October, as the HSBC India Manufacturing PMI registered a decline to 54.7 from 55.1 in September. The index remained well above the 50-mark, signaling continued expansion. Nevertheless, output and new orders experienced marginally reduced increases when compared to the prior month.

New external orders bolstered activity, expanding at the most rapid rate in six months, propelled by demand from markets encompassing the US, UK, UAE and neighboring Asian countries. Manufacturing output also registered a significant increase, despite a deceleration in the rate of growth.

Input price inflation receded to its lowest level since February as cost burdens moderated. Selling price increases were marginal, registering the smallest ascent in almost four years. Employment expanded for the second successive month, although the pace of hiring remained subdued.

Manufacturers sustained inventory accumulation, evidenced by a record expansion in finished goods stocks. Conversely, business sentiment deteriorated, with approximately 18% of firms forecasting augmented output in the subsequent year.