Factory PMI at 5-month low
NEW DELHI : India’s manufacturing activity in September grew at the slowest pace in five months after new factory orders softened from their high in August, a private survey said. The purchasing managers index (PMI) fell to 57.5 in September, compared with at 58.6 in August, 57.7 in July, 57.8 in June and 58.7 in May, according to S&P Global. A figure of 50 separates expansion from contraction.
“Growth of new export orders softened from August’s nine-month high, but remained sharp," the survey said. “September data showed a let-up in the recent surge in costs faced by Indian goods producers," it said, as inflation receded to its lowest in over three years during the month. S&P said that despite softening of new orders, Indian firms noted new business gains from clients in Asia, Europe, North America and the Middle East.
“India’s manufacturing industry showed mild signs of a slowdown in September, primarily due to a softer increase in new orders which tempered production growth," said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence. “Manufacturers held a strongly positive outlook for production, as they expect demand to strengthen over the course of the coming 12 months," she said, adding that upbeat forecasts, which includes initiatives to replenish input stocks and continued job creation efforts, pointed Indian manufacturing towards a favourable trajectory. The S&P survey pointed out that driven by higher labour costs and demand strength, average prices charged by Indian manufacturers during September rose at a solid and faster rate than previous months.
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