Indian factory activity expanded at its fastest pace in nearly two years in November as burgeoning order books led manufacturers to accelerate output, a business survey showed on Monday. The HSBC Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, rose to 53.3 in November from 51.6 in October, its highest since February 2013, and the thirteenth consecutive month of expansion in activity.
A Reuters poll had expected manufacturing activity to lose some steam and predicted the index would fall to 51.2. New orders were supported by strong domestic demand for consumer goods while foreign orders remained robust. The sub-index soared to a 21-month high of 56.2 from October’s 53.0.
The expansion in output encouraged manufacturers to add more jobs. The survey also showed companies passed on additional input costs to consumers at a faster pace, which could revive inflationary pressures after several months of slowing.