India’s manufacturing sector experienced a slowdown in September, with new orders, output, and input purchases increasing at the slowest pace in four months, while job creation fell to its lowest level in a year, according to a monthly survey released on Wednesday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index decreased from 59.3 in August to 57.7 in September, indicating the weakest improvement in the sector’s health since May, despite tax relief enhancing business optimism for the upcoming year. In PMI terminology, a figure above 50 signifies expansion, while below 50 indicates contraction. “The September headline index has softened but remains significantly above the long-term average,” stated Pranjul Bhandari, Chief India Economist at HSBC.
The PMI data for September pointed to ongoing growth in India’s manufacturing sector, though with a slight reduction in momentum, attributed to competitive market conditions. Additionally, the survey indicated an increase in international order growth at the close of the second fiscal quarter, as Indian manufacturers noted rising demand from regions including Asia, Europe, the Americas, and the Middle East.