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India’s manufacturing activity demonstrated a resurgence in September, as indicated by the HSBC India Manufacturing Purchasing Managers’ Index (PMI), which advanced to 55.1, up from 52.8 in August. The most recent figure signaled the most robust upturn in the sector’s condition in seven months.
The expansion was underpinned by more rapid gains in new orders and factory output, reflecting heightened demand for electronics, food, pharmaceuticals and textiles. New export orders also saw an acceleration, bolstered by demand originating from Brazil, Europe, the UAE and the US.
The labor market demonstrated renewed expansion in September, with job gains accelerating to the highest level observed since May. Concurrently, firms bolstered acquisitions and inventory levels in anticipation of sustained demand. Business sentiment also advanced to a four-month peak.
Escalating price pressures emerged, as heightened expenses for electronic components, pharmaceuticals and steel contributed to rising input costs. Nevertheless, both input-cost and selling-price inflation remained restrained relative to historical benchmarks. The average PMI for the second fiscal quarter registered 53.8, the lowest level since Q2 2021.
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