NEW DELHI: Manufacturing sector activity in the country moderated to an eight-month low in Sept as rates of factory production and sales were soft, and global orders rose at their slowest pace in one-and-a-half years, a survey showed on Tuesday.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell from 57.5 in Aug to 56.5 in Sept, the weakest since Jan.The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 manufacturing companies.
The overall level of business confidence fell to its lowest since April 2023, according to the survey.
“Momentum in India’s manufacturing sector softened in Sept from the very strong growth in the summer months. 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,” said Pranjul Bhandari, chief India economist at HSBC.
“Factories continued to produce goods at a robust pace that outpaced the long-run series average. That said, with growth softening in the consumer and capital goods segments whilst steadying at intermediate goods makers, the overall rate of expansion retreated to an eight-month low,” according to the survey.
The results also showed that hiring growth also receded in Sept, reflecting a reduction in the number of part-time and temporary workers at some firms. Those that recruited extra staff cited projects in the pipeline.
