India’s factories regain momentum as September PMI reaches 55.1
India’s manufacturing index rebounded to 55.1 in September from 52.8 in August, its strongest improvement in seven months. Firmer domestic and overseas demand lifted orders and production, while hiring resumed. The recovery ended a three-month slowdown, although the July–September average remained weak by the standards of the corresponding fiscal quarter.
Economics & Markets··Evening
September reverses a three-month slowdown
India’s manufacturing purchasing managers’ index, sponsored by the bank HSBC, rose to 55.1 in September from 52.8 in August. It marked the strongest improvement in manufacturing conditions in seven months. A reading above 50 indicates expansion in activity compared with the previous month.[1], [2]
The index had declined from 54.2 in June to 53.5 in July before reaching a five-year low in August. Despite September’s recovery, the July–September average was 53.8, the weakest result for the corresponding fiscal quarter since 2021.[1]
Stronger demand lifts factory production
Firmer demand for electronics, food products, pharmaceuticals and textiles supported the recovery. New orders increased at their fastest pace since February, and production growth reached a four-month high. Intermediate goods led both output and new-order growth. Capital goods remained the weakest category, with expansion slowing from August.[1]
Hiring resumes alongside faster price increases
Employment returned to growth after declining in August, with job creation at its strongest since May. Business confidence reached a four-month high. Input prices rose more quickly as electronic components, pharmaceutical products and steel became dearer. Manufacturers also increased selling prices at a faster pace, although both input and selling-price inflation remained below their long-run averages.[1]
