Indicating modest improvement in manufacturing sector’s business condition, India Manufacturing Purchasing Managers’ Index (PMI)-a composite single-figure indicator of manufacturing performance- remained unchanged for the month of September at 51.2. However, the reading signaled an expansion for the second consecutive month, remaining above the no-change mark of 50.0.
As per the report, the expansion in manufacturing activity of the country was on account of increase in output and new orders. However, the expansion rate remained weak in both cases, by easing slightly. Inflows of new orders increased for the second month in succession during September. The rate of growth softened from the preceding month and was marginal overall. The survey data further showed that Indian manufacturers raised their staffing levels at the fastest pace since October 2012 on the back of more new work orders, while noting decrease in new export orders.
On the inflation front, the report said that even if cost pressure intensified during September month due to Goods and Services Tax (GST) and greater prices for steel and petroleum products, inflation was modest, remaining below the long-run series average. Further, in order to protect margins amid higher inflationary pressures, firms raised their selling prices but at a marginal pace as amid competitive conditions, they couldn’t increase the prices more.
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