Rise in India's manufacturing sector activities in September: PMI data
Indian manufacturers increased production in September as they prepared for improved demand and stock replenishment
According to the monthly survey, India’s manufacturing sector activities increased in September as companies gained from rising demand conditions and the lifting of COVID-19 limitations.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) increased from 52.3 in August to 53.7 in September, reflecting a greater rise in overall business conditions across the sector.
For the third month in a row, the September PMI statistics indicated an improvement in overall operating conditions. A number above 50 indicates expansion, whereas a score below 50 indicates contraction.
“Indian manufacturers increased production in September as they prepared for improved demand and stock replenishment,” said Pollyanna De Lima, Economics Associate Director at IHS Markit, adding that there was a significant increase in new work intakes, with some help from international markets.
Firms increased production and acquired more inputs as sales increased at a faster rate. According to the study, there was also a faster uptick in overseas sales and an increase in business confidence.
Companies purchased more raw materials and semi-finished items to satisfy increased sales and keep up with manufacturing schedules. Another element that contributed to the increase in input purchases was the widespread belief that production will rise in the coming year.
“Companies expect greater sales growth as pandemic-related limitations continue to diminish,” according to the survey.
The manufacturing sector’s employment did not change much in September, according to the figures. “In certain cases, survey respondents indicated that government regulations governing shift work stopped them from being hired,” Lima said.
The overall rate of input cost inflation reached a five-month high due to rising fuel, raw material, and transportation prices. However, output prices climbed at a slower and more moderate pace.
“Cost inflationary pressures increased in September after receding in the previous two months. Input costs rose as a result of increased fuel and transportation expenses, as well as strong demand for scarce products “Lima explained.