HSBC: Indian PMI rebounds in Oct.

Indian purchasing managers' index ( PMI) in manufacturing sector bounced up to 52 in October from 50.4 in September due to growth of domestic new business orders, said a report by HSBC on Tuesday. The improvement of PMI avoided contraction of Indian manufacturing sector and increasing demand during the traditional festival season is expected to be the main driver. Indian manufacturers reported a solid rise in new business orders received in the month of October, said the report. The report also said, "The rate of new order growth remained below the historical average, which was, in part, due to a further decrease in new business received from export markets. Demand in key export countries continued to be affected by softening global economic conditions." This means that the PMI with Indian manufacturing sector could fall again after the festival season, said an industrial analyst. Input and output prices rose substantially in October with higher raw material and transport costs as the main driver of cost increases, said the report. So far, Indian manufacturing PMI has stayed above 50 for 31 months riding on brisk domestic demand in the Asian third largest economy.