India Manufacturing Growth Eases In September

(RTTNews) - India's factory growth showed a mild loss of momentum in September amid stronger rises in input and output prices, final survey data from S&P Global showed on Wednesday.

The HSBC manufacturing Purchasing Managers' Index dropped to 57.7 in September from 59.3 in August. However, a score above 50 indicates expansion, and the same was below the flash estimate of 58.5.

Among components, new orders, output, and input buying all rose at the slowest rates since May, while job creation retreated to a one-year low.

The overall increase in new orders was driven by demand buoyancy, while the same was curbed by competitive pressures. Meanwhile, the growth in international sales picked up, linked to improved demand from Asia, Europe, the Americas, and the Middle East.

On the price front, input price inflation accelerated to a 4-month high due to greater battery, cotton, electronic component, and steel prices. Selling price inflation quickened to a 12-year high as greater outlays on labor, raw materials, and transportation prompted hikes.

Looking ahead, Indian manufacturers remained confident about output expectations over the coming twelve months as favorable demand conditions, investment in marketing, and better customer relations, and panelists identified GST cuts as a tailwind to growth.