India manufacturing growth moderates in October as output slows

India's manufacturing activity showed signs of deceleration in October as both output and new orders grew at a more subdued rate compared to September, according to the HSBC India Manufacturing Purchasing Managers' Index. The seasonally adjusted PMI fell to 54.7 from 55.1 in the preceding month, marking a pullback from the prior month's pace of expansion.

While the decline represents a cooling from September's momentum, the index maintained a comfortable distance above the neutral mark of 50.0, which separates expansion from contraction. This suggests the manufacturing sector continues to grow, albeit at a more moderate tempo than observed in recent months.

The October reading remained above the long-run average for the index, indicating that despite the slowdown, manufacturing activity levels persist in expansionary territory. The softer rise in output and new orders points to some potential caution in demand conditions, though continued factory activity suggests underlying resilience in India's industrial base.

The moderation in PMI readings often reflects business sentiment towards near-term prospects. A sustained reading above 50 typically indicates that manufacturers continue to add capacity and employment, even as growth rates fluctuate. The October figures suggest India's manufacturing sector is navigating a period of more measured expansion as the year progresses.