Activity in India’s manufacturing sector fell to an eight-month low in September. This came to light in a monthly survey on Tuesday. It has been told that this trend has been seen due to slow growth in factory production, sales and new export orders. According to PTI news, HSBC India Manufacturing Purchasing Managers’ Index (PMI) stood at 56.5 in September, which was 57.5 in August.
New export orders PMI remained low
According to the news, under PMI, an index above 50 means expansion in production activities, while a figure below 50 indicates contraction. HSBC chief economist (India) Pranjul Bhandari said India’s manufacturing sector slowed in September after very strong growth in the summer season. He said the slowing pace of production and new orders and the slowdown in export demand growth were particularly evident as the new export orders PMI remained at the lowest since March 2023.
Slight decline in growth of manufacturing sector
According to PMI data for September, there has been a slight decline in the growth of the manufacturing sector across India. The rate of growth in factory production and sales has declined for the third consecutive month. Also, international orders have grown at the slowest pace in one and a half years. On the price front, there was moderate increase in raw material costs and selling charges. Indian manufacturers increased their tariffs marginally in September as a result of rising purchasing prices, as well as higher labor costs and favorable demand conditions.
How was business confidence?
The overall level of business confidence fell to its lowest level since April 2023. About 23 percent of Indian manufacturers have projected production to increase in the coming year, while the rest have forecast no change. The HSBC India Manufacturing PMI has been prepared by S&P Global based on responses to questionnaires sent to purchasing managers in a group of about 400 companies.
