PMI: India's factory growth Falls To 3-Month Low In September

The Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 55.1 in September from 56.2 in August. PMI growth has fallen to a 3-month low level in September The data has been recorded as even lower than 55.8, as predicted by economists in a Reuters poll. However, PMI, in September boomed for the 15th month in a row, although slowed down in pace from the last month.

According to Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, "The latest set of PMI data show us that the Indian manufacturing industry remains in good shape, despite considerable global headwinds and recession fears elsewhere...There were softer, but substantial, increases in new orders and production in September, with some leading indicators suggesting that output looks set to expand further at least in the short-term as firms seek to fulfill sales contracts and replenish stocks."

Commenting about input costs, Lima mentioned, "Input costs rose at the slowest rate in almost two years as suppliers' stocks improved in line with subdued global demand for raw materials and recession risks." On the other hand, "Currency risks and the impact of a weaker rupee on inflation and interest rates could derail optimism during October."