New work orders boost India's production growth in October: PMI

New Delhi, Nov 1 Healthy demand conditions boosted the growth of India's manufacturing industry in October.

The headline seasonally-adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 55.9 (index reading) in October as against a reading of 53.7 in September.

The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.

Last month's seasonally adjusted IHS Markit India Manufacturing PMI was in expansion territory for the fourth month in a row.

Besides, the latest figure pointed to the strongest improvement in overall operating conditions since February.

"Manufacturing sector growth in India gained steam in October as companies scaled up production in line with a substantial upturn in new work intakes. Firms stepped up input purchasing amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high," the PMI report.

"Panellists continued to report rising prices for several materials and transportation, with overall input costs increasing at the sharpest rate since February 2014. Subsequently, selling charges were lifted again."