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India's manufacturing sector growth slowed down in the month of September, as rates of expansion in factory production and sales receded for the third straight month, both of which were at their weakest since the turn of the year but above their respective long-run averages. Besides, international orders rose at the slowest pace in a year-and-a-half. 

According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 56.5 in September as against 57.5 in August 2024, highlighting a robust improvement in the health of the sector that was nonetheless the weakest since January. With manufacturing growth softening throughout the second fiscal quarter, the average PMI reading slipped to its lowest since the three months to December 2023.

Despite this loss of growth momentum, net employment and quantities of purchases rose, while business confidence was broadly aligned with its long-run average. On the price front, there were moderate increases in input costs and selling charges. Positive demand trends, successful advertising and favourable client interest featured as the main determinants of sales growth among the qualitative part of the survey. The upturn, which was substantial but the slowest in 2024 so far, was reportedly curbed by fierce competition.