Manufacturing activity at 5-month low in September, but stays strong

NEW DELHI: Manufacturing activity in the country remained robust in September on the back of new orders although growth was the slowest in five months while business confidence surged, a survey showed on Tuesday.
The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) registered a reading of 57.5 in September, down from 58.6 in August. Although the lowest in five months, the latest data remained firmly above the no-change mark of 50 and its long-run average (53.9), signalling a sharp rate of expansion.

The 50-point mark separates expansion from contraction and the survey is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. Robust domestic demand has helped the manufacturing sector stage a sharp recovery against the backdrop of the global slowdown, which has hurt shipments from the country.
New orders, the largest sub-component of the PMI, rose at a softer pace in September, the survey results showed. That said, the latest increase was sharp and historically strong.
The survey showed that manufacturers were confident that output volumes would increase over the course of the coming 12 months, with the overall level of positive sentiment improving to its highest in 2023 so far. Buoyant customer appetite, advertising, and expanded capacities all boosted optimism.