Flash PMI eases to 58.5 in Sep on weak export orders

The HSBC India Flash Manufacturing Purchasing Managers' Index (PMI) eased to 58.5 in September from 59.3 in the preceding month, as new export orders rose at the weakest pace in six months under the impact of 50 per cent tariff on India by the US administration. Domestic orders showed resilience ahead of the festive season.

- HIMANSHI BHARDWAJ

"We expect this trend to last till Diwali, giving an overall boost to growth. Things may change post Diwali, with the drag from the 50 per cent tariff from the US overtaking the boost from tax cuts," HSBC said.

HSBC India Services PMI in September also dropped to 61.6 from 62.9 in August. Composite PMI Output eased to 61.9, down from the multiyear high of 63.2 in August.