Factory growth slows, PMI at 4-month low in Sept

INDIA’S MANUFACTURING ACTIVITY softened in September, with the S&P Global Purchasing Managers’ Index (PMI) falling to 57.7 from 59.3 in August, signalling the slowest pace of expansion in four months.

- FE BUREAU

While the reading remains comfortably above the 50-mark that separates growth from contraction, gains in new orders, output, and input buying moderated, suggesting cooling momentum in the sector. It marked the weakest improvement in manufacturing conditions since May.

Despite the slowdown, sentiment remained upbeat, supported by Goods and Services Tax (GST) relief measures that are expected to bolster business confidence in the coming year.

Pranjul Bhandari, chief India economist at HSBC, explained: “The September headline index softened, but it remained well above the long-term average. New export orders increased at a faster rate in September, indicating demand outside of the US might be offsetting any decline in demand from the US as a result of tariffs.”