INSUBCONTINENT EXCLUSIVE:
The September manufacturing PMI coincided with the flash estimate of 56.5 for the month, though it marks the 39th consecutive month of
rising manufacturing output since July 2021 | Photo: Shutterstock3 min read Last Updated : Oct 01 2024 | 11:50 AM IST
Growth in the
Indian manufacturing sector slowed to an eight-month low in September, as the headline Purchasing Managers Index (PMI) figure released by
HSBC on Tuesday stood at 56.5, down from 57.5 in August
The slowdown in the sector was attributed to softer expansion in factory production and sales, which were at their weakest since the
beginning of the year.
However, net employment and purchase quantities rose during the month, and business confidence was broadly aligned
with its long-run average
data revealed a mild setback in manufacturing growth across India
For the third straight month, rates of expansion in factory production and sales receded, both of which were at their weakest since the turn
Notably, international orders rose at the slowest pace in a year and a half," the survey by the private agency noted.
A figure above 50 in
the index denotes expansion in activity, while a figure below it signifies contraction.
The survey highlighted positive demand trends,
successful advertising, and favourable client interest as the main drivers of sales growth in the qualitative part of the survey
A factor constraining total sales growth was a softer increase in new export orders, with the rate of expansion being moderate and the least
softened in September after the strong growth seen during the summer months, as output and new orders grew at a slower pace
The deceleration in export demand growth was particularly noticeable.
The survey noted that growth slowed in the consumer and capital
goods segments, while it steadied among intermediate goods makers
Cost pressures increased in September, with panellists citing higher chemical, packaging, plastic, and metal prices.
"As a result of
rising purchasing prices, as well as greater labour costs and favourable demand conditions, Indian manufacturers raised their charges in
September," the survey noted.
On the job creation front, hiring growth also slowed in September, reflecting a reduction in part-time and
temporary workers at some firms
Those that recruited additional staff cited projects in the pipeline
The combination of job creation and slower increases in new business allowed companies to keep pace with their workloads.
"Weaker profit
manufacturing PMI coincided with the flash estimate of 56.5 for the month, though it marks the 39th consecutive month of rising
manufacturing output since July 2021.First Published: Oct 01 2024 | 11:08 AMIST
