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Informist, Tuesday, Oct. 1, 2024

 

--India Sept manufacturing PMI 56.5 vs 57.5 in Aug 

 

NEW DELHI – India's manufacturing sector activity slowed down sharply in September, with the HSBC India Manufacturing Purchasing Managers' Index easing to 56.5 in September, the lowest since January, from 57.5 in August, S&P Global said.

 

Manufacturing activity expanded at a slower pace last month because of a slowdown in factory output and sales, S&P Global said. The flash manufacturing PMI for last month, released on Sept. 23, was at an eight-month low of 56.7. A PMI reading above 50 denotes expansion, while a print below that indicates contraction. The average manufacturing PMI reading for Jul-Sept fell to a three-quarter low of 57.4.

 

"Momentum in India's manufacturing sector softened in September from the very strong growth in the summer months," Pranjul Bhandari, chief India economist at HSBC, said in the release. "Output and new orders grew at a slower pace, and the deceleration in export demand growth was especially evident as the new export orders PMI was the lowest since March 2023."

 

Growth in sales was led by positive demand trends, successful advertising and favourable client interest, S&P Global said. However, the upturn, which was the slowest in 2024, was curbed by fierce competition, it added.

 

Production of goods at factories continued at a robust pace in September, but the overall rate of expansion was at an eight-month low. The slowdown in factory output was constrained by softening growth in the consumer and capital goods segments, S&P Global said.

 

Even as growth momentum subsided last month, net employment and quantities of purchases rose, S&P Global said. "Weaker profit growth might have an impact on companies' hiring demand, as the pace of employment growth slowed for a third month," Bhandari noted.

 

Cost pressures ticked higher in September on the back of higher chemical, packaging, plastic and metal prices, S&P Global said. As input prices rose along with higher labour costs, manufacturers increased their charges in September, it said. "The rate of inflation softened to a five-month low and was similar to that seen for input costs," S&P Global said.  

 

Around 23% of manufacturers surveyed by S&P Global expect output to grow in the year ahead, while the remaining firms predict no change, S&P Global said. Overall business confidence fell to its lowest level since April 2023.  End

 

Reported by Shubham Rana

Edited by Tanima Banerjee

 

 

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