India’s manufacturing sector growth slowed moderately in September but the overall growth remained robust, survey data published by S&P Global showed on Monday.
The manufacturing Purchasing Managers’ Index fell to 55.1 in September from 56.2 in August. The score was also below economists’ forecast of 55.8.
Nonetheless, the reading has remained above the 50.0 neutral mark for the fifteenth month in a row.
Although the factory orders growth slowed, the rate of growth was sharp in September due to greater demand from domestic and international clients.
The survey showed that new orders, international sales and output increased in each of the three broad areas of the manufacturing industry.
Employment rose at the quickest pace in three months, albeit one that was slight overall.
On price front, the survey suggested that input costs rose at the slowest pace since October 2020. The slowdown in input price inflation helped to curtain the upturn in selling prices.
Business sentiment improved for the third month in a row in September, reaching its highest level in over seven-and-a-half years.
Despite an improvement in confidence, currency risks and the impact of a weaker rupee on inflation and interest rates could derail optimism during October, Pollyanna De Lima, an economics associate director at S&P Global Market Intelligence, said.
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