Hit by subdued demand conditions domestically and externally, India's manufacturing activity remained unchanged in the month of September 2019. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - was at 51.4 in September, unchanged from August.
The report found that aggregate manufacturing production rose in the reported month, but the pace of expansion was the joint-slowest since March 2018. Further, improved technology and new business gains at some firms boosted output, while other companies lowered production due to muted demand. The report also noted that total sales rose further, but the pace of increase was among the weakest seen in the current 23-month sequence of uninterrupted expansion.
On the price front, a lack of demand for raw materials and semi-finished items acted to curb inflation in September. The rate of increase in overall cost burdens was among the weakest seen in a decade. Similarly, a marginal rise in selling prices was recorded.
Besides, the report highlighted a dip in business sentiment among Indian goods producers. The degree of optimism was the second-lowest registered in over two-and-a-half years. Some firms expect a pick-up in demand and investment in marketing to lift output in the year ahead, while others were concerned about competitive pressures and tough market conditions.