A monthly survey said that the growth in India’s manufacturing sector slipped to an eight-month low in September due to a softer increase in factory production, sales, and new export orders.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index slipped from 57.5 in August to 56.5 in September- September- a reading that marked the weakest growth since January. In PMI terms, a print above 50 indicates expansion, while a score below 50 denotes contraction.
Momentum in India’s manufacturing sector moderated in September from the very buoyant growth in the summer months.
“Output and new orders grew at a slower pace, and the deceleration in export demand growth was especially evident as the new export orders PMI was the lowest since March 2023,” said Pranjul Bhandari, Chief India Economist at HSBC.
The September PMI data marked a mild setback to growth in manufacturing across the nation. The rate of expansion in factory output and sales retreated for the third successive month. More so, international orders rose at the slowest pace in one-and-a-half years.
Price-wise, there were modest gains in input costs and selling charges.
Indian manufacturers slightly increased their charges in September due to rising purchasing prices, higher labor costs, and favorable demand conditions.
According to Bhandari, input prices rose in September at an accelerating rate, while factory gate price inflation softened, entailing intensifying compression on manufacturers’ margins.
Weaker profit growth might affect companies’ hiring demands as employment growth slowed for a third month,” said Bhandari.
Hiring growth also receded in September, reflecting a reduction in the number of part-time and temporary workers.
