India Manufacturing PMI eases to 55.1 in Sept

3 Oct 2022 , 02:31 PM

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers Index (PMI) stood at 55.1 in September 2022, expanding for the fifteenth month in a row. The headline figure, however, slipped from 56.2 in August, though pointed to a solid rate of growth. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted. Factory orders continued to increase at the end of the second fiscal quarter, stretching the current sequence of expansion to 15 months. New export orders rose further in September. The increase was marked, the sixth in consecutive months and the fastest since May. Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: The latest set of PMI data show us that the Indian manufacturing industry remains in good shape, despite considerable global headwinds and recession fears elsewhere. There were softer, but substantial, increases in new orders and production in September, with some leading indicators suggesting that output looks set to expand further at least in the short-term as firms seek to fulfil sales contracts and replenish stocks. Businesses also benefited from a notable moderation in price pressures. Input costs rose at the slowest rate in almost two years as suppliers stocks improved in line with subdued global demand for raw materials and recession risks. Subsequently, Indian companies sought to restrict selling price hikes and overall charge inflation eased to a seven-month low. Once again we saw businesses become more confident in the outlook as inflation worries were tamed. The overall level of positive sentiment seen in September was the best in over seven-and-a-half years. That said, currency risks and the impact of a weaker rupee on inflation and interest rates could derail optimism during October. Powered by Capital Market - Live News