Manufacturing sector growth falls to 11-month low of 56.5 in Nov

However, the pace of growth remained above its long-run average

NEW DELHI: India's manufacturing sector growth fell to a joint 11-month low of 56.5 in November, restricted by competitive conditions and inflationary pressures amid a softer increase in factory orders, a monthly survey said on Monday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 57.5 in October to 56.5 in November, signaling a softer improvement in the health of the sector.

However, the pace of growth remained above its long-run average.

In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

"India recorded a 56.5 manufacturing PMI in November, down slightly from the prior month, but still firmly within expansionary territory," Pranjul Bhandari, Chief India Economist at HSBC said.

Bhandari further noted that strong broad-based international demand, evidenced by a four-month high in new export orders, fueled the Indian manufacturing sector's continued growth.

At the same time, however, the rate of output expansion is decelerating due to intensifying price pressures.