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Informist, Monday, Sep 23, 2024

 

--India Sep flash composite PMI output index 59.3 vs 60.7 Aug final 

--India Sep flash services PMI activity index 58.9 vs 60.9 Aug final 

--India Sep flash manufacturing PMI 56.7 vs 57.5 Aug final 

 

NEW DELHI – India's private sector activity in September grew at the slowest pace in 2024, with both the services sector and the manufacturing sectors witnessing a slowdown in expansion. The HSBC Flash India Composite Purchasing Managers' Output Index, compiled by S&P Global, declined to a nine-month low of 59.3 in September from the final print of 60.7 in August.

 

"Both the manufacturing and service sectors exhibited similar trends during the month. Nevertheless, the pace of growth remained well above the long-term average," Pranjul Bhandari, chief India economist at HSBC, said in the release. 

 

The flash manufacturing PMI index fell to an eight-month low of 56.7 in September from last month's final print of 57.5, while the services PMI eased to a 10-month low of 58.9 from 60.9 in August. A Purchasing Managers' Index reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.

 

Total business activity continued to expand on the back of a sharp rise in new orders. The pace of growth of the new orders, however, was the lowest this year, S&P Global said. 

 

Job creation continued to rise at a robust pace in September amid improved business confidence, with employment in the service sector increasing at the fastest pace since August 2022. Service sector firms hired more workers, including on a permanent basis, because of a rise in new orders, S&P Global said. Meanwhile, the pace of job growth in manufacturing eased in September. 

 

"As well as taking on extra staff, Indian manufacturers also expanded their purchasing activity during September," S&P Global said. "This helped to support a further marked increase in stocks of inputs as suppliers continued to deliver goods in a timely manner."

 

Stocks of finished goods, on the other hand, fell to a four-month low because of a slowdown in growth of output, S&P Global said.

 

Rates of both input cost and output price inflation were relatively muted, with service providers raising their charges at the slowest pace since February 2022. Firms that reported a rise in input costs linked it to higher prices for raw materials and electricity, S&P Global said.

 

Even as output growth slowed down in September, firms in India remained optimistic about business activity for the coming year, S&P Global said.  End

 

Reported by Shubham Rana

Edited by Namrata Rao

 

 

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