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India's manufacturing sector growth eases to 57.5 in September
Oct-03-2023

India's manufacturing sector growth eased in the month of September, however remained firmly above the no-change mark of 50.0 and its long-run average (53.9), therefore signaling a sharp rate of expansion, on the back of a sharp rise in new orders which underpinned sustained expansions in output, input purchasing and employment. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 57.5 in September 2023 from 58.6 in August 2023. 

The report stated that manufacturers' purchasing of inputs continued to grow at a robust rate that was aligned with those seen for new orders and production. This contributed to another increase in pre-production inventories. Holdings of finished goods meanwhile fell further as companies reportedly fulfilled some orders directly from warehoused items. It further said the growth of new export orders softened from August's nine-month high, but remained sharp. 

On the price front, average prices charged by Indian manufacturers rose at a solid and faster rate that outpaced its long-run average, driven by higher labour costs and demand strength. Indian manufacturers were confident that output volumes would increase over the course of the coming 12 months, with the overall level of positive sentiment improving to its highest in 2023 so far. Buoyant customer appetite, advertising, and expanded capacities all boosted optimism.


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