India Manufacturing PMI Expands At A Faster Pace In September
A gauge of activity across India’s manufacturing sector expanded at a faster pace in September than in the preceding month.
The IHS Markit India Manufacturing Purchasing Managers’ Index stood at 53.7 in September against 52.3 in August, according to a media statement. A reading above 50 indicates economic expansion.
Companies benefited from strengthening demand conditions amid the easing of Covid-19 restrictions, said IHS Markit in its accompanying release. "With sales rising at a stronger rate, firms scaled up production and purchased additional inputs. There was also a faster upturn in international sales and an improvement in business confidence," the release said.
Economic activity levels, as gauged by high-frequency indicators, moved back to pre-pandemic levels in September. Most states across the country have eased restrictions due to fewer Covid infections and rising rates of vaccination.
Consumer goods was the brightest spot in September, said IHS Markit. It posted the highest PMI reading of the three monitored market groups, as orders accelerated.
Aggregate manufacturing production in India rose for the third straight month in September. The surveyed members cited favourable market conditions and improved sales volumes.
New work intake remained strong in September, domestically and internationally.
Companies continued to purchase extra inputs in September, but jobs were little changed over the month. In some instances, survey participants indicated that government guidelines surrounding shift work prevented hiring.Pollyanna De Lima, Economics Associate Director, IHS Markit
Pre-production inventories rose on improved current and future demand conditions. "Holdings of manufactured goods continued to fall sharply amid the immediate dispatch of items to clients," IHS said.
Rising fuel, raw material and transportation prices pushed the overall rate of input cost inflation to a five-month high. "Output prices, however, increased at a slower and only moderate rate."