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Indian manufacturing activity expanded further in the month of November, on the back of quickest increases in new orders and production. Buying levels expanded at a marked and accelerated rate as firms also sought to benefit from relatively mild price pressures. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) increased to 55.7 in November from 55.3 in October.

The report further noted that a stronger upturn in factory orders helped drive the headline PMI higher in November. Demand strength and successful marketing efforts boosted overall sales. Companies also reported a notable improvement in international demand for their goods, with new export orders expanding at the second-fastest pace since May.

On the price front, despite robust demand for inputs, the rate of cost inflation softened considerably in November. The latest rise was moderate, the joint-weakest in 28 months and well below its long-run average. In the last month, there were higher prices for metals, paper and transportation but lower fees for other items.

As per the report, there remained signs of capacity pressures among manufacturers, as seen by a further increase in outstanding business levels. Firms were confident that demand would remain strong in the coming 12 months. As a result, they foresee growth of production volumes. Sentiment improved to its highest level in close to eight years.