India's manufacturing PMI hits 7-month high in September as domestic, export demand strengthen
India’s manufacturing activity accelerated to a seven-month high in September, with the HSBC PMI rising to 55.1 from 52.8 in August as stronger domestic and export demand lifted new orders and output. Factory production posted its sharpest expansion in four months, while hiring resumed and business sentiment improved.
New Delhi: India's manufacturing sector experienced a notable surge in September, reaching a seven-month peak as robust domestic and international demand fueled a surge in new orders and output, according to a private survey. The HSBC Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to 55.1 in September, up from 52.8 in August. A reading above 50 signifies expansion, while a figure below implies contraction.
A surge in demand for electronic, food, pharmaceutical, and textile products led to a more rapid increase in new business. The rise in total sales marked the fastest increase since February. India's factory sector concluded the quarter on a stronger note.
The PMI rose in September as enhanced domestic and overseas demand amplified sales and production, stated Pranjul Bhandari, chief India economist at HSBC. Manufacturers also upgraded their output expectations, with overall business sentiment surging to a four-month high. Respondents cited a pipeline of new inquiries and expectations of sustained favorable demand conditions as pivotal factors.
Intermediate goods emerged as the most robust segment of India's manufacturing sector in September, driving growth in both new orders and output. Conversely, capital goods lagged, recording only incremental gains that were slower than in August.
Export orders also expanded at a faster pace, with panel members reporting gains from Brazil, Europe, the UAE, and the US. This acceleration in demand momentum spurred the most significant expansion in Indian factory production in four months, the survey noted.
Employment growth rekindled in September following a brief slowdown in August. Hiring accelerated at its quickest pace since May, and manufacturers grew increasingly optimistic about the months ahead. Anticipating robust future sales, companies heightened their inventories by procuring additional raw materials, preparing for anticipated sales, explained Bhandari.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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