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Indian manufacturing activity growth eased further in the month of September, but it remains above the boom-or-bust line of 50 that separates expansion from contraction, as companies stepped up production in tandem with a sustained increase in new work intakes. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 55.1 in September from 56.2 in August.

The report further noted that factory orders continued to increase at the end of the second fiscal quarter, stretching the current sequence of expansion to 15 months. Despite easing to the weakest since June, the rate of growth was sharp. Besides, new export orders rose further in September. The increase was marked, the sixth in consecutive months and the fastest since May.

On the inflation front, goods producers enjoyed a weaker inflationary environment in September, as input costs rose at the slowest pace since October 2020. While around 8% of companies reported higher purchasing prices, 91% signalled no change. This retreat in cost inflationary pressures helped curtail the latest upturn in selling prices, which was modest and the slowest in seven months.