India manufacturing growth gains momentum in September

India?s manufacturing sector regained momentum in September, with the HSBC India Manufacturing Purchasing Managers? Index (PMI) rising to 55.1, from 52.8 in August. The latest reading marked the strongest improvement in the sector?s health in seven months.

Growth was supported by faster increases in new orders and factory output, with stronger demand reported for electronics, food, pharmaceuticals and textiles. New export orders also accelerated, supported by demand from Brazil, Europe, the UAE and the US.

Employment growth resumed in September and reached its strongest pace since May, while companies increased purchases and inventories to meet expected demand. Business confidence also rose to a four-month high.

Price pressures increased, with higher costs for electronic components, pharmaceuticals and steel pushing up input prices. However, both input-cost and selling-price inflation remained mild by historical standards. The average PMI for the second fiscal quarter was 53.8, the lowest since Q2 2021.

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