India`s manufacturing PMI eases to 57.7 in September
India's manufacturing industry lost some gaining momentum in the month of September, as new orders, output and input buying all rose at the slowest rates since May, while job creation retreated to a one-year low. Still, companies were strongly confident regarding the outlook for production, with changes in GST (goods and services tax) rates boosting optimism.
According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 57.7 in September from 59.3 in August, pointing to the weakest improvement in the health of the sector since May. Despite weak job creation relative to sales growth, outstanding business volumes increased only marginally in September. The pace of accumulation was below that seen in August and its long-run average.
On the inflation front, input costs continued to increase in September. The overall rate of inflation was solid and the quickest since May, though remained below its long-run average. Selling charges increased at a sharp pace, and one that was faster than that seen for input costs. For the ninth time in ten months, manufacturers reported a fall in stocks of finished goods. According to them, with growth of sales outpacing that of production in recent months, orders were often fulfilled from inventories.
