Manufacturing PMI Index: India’s Manufacturing PMI for September Records Fastest Growth Pace in Over 8 Years | India Business News

NEW DELHI: India manufacturing sector activity It improved for the second month in a row in September and hit a high of more than eight and a half years supported by accelerated increases in new orders and production, even as companies cut their number of employees, a monthly survey said Thursday.
The incumbent IHS Markit India Manufacturing seasonally adjusted Purchasing Managers Index (PMI) increased from 52.0 in August to 56.8 in September, the highest since January 2012.
“The Indian manufacturing industry continued to move in the right direction, with September PMI data highlighting many positives. Due to the relaxed Covid-19 restrictions, factories went full steam ahead in production, supported by an increase in production. new job, “said Pollyanna De Lima, associate director of economics at IHS Markit.
In April, the index had entered contraction mode, after staying in growth territory for 32 consecutive months. In PMI parlance, a print above 50 means expansion, while a score below indicates contraction.
The rebound in total sales was supported by a renewed expansion in new export orders, the first since before the escalation of the Covid-19 outbreak.
“Exports also recovered, after six consecutive months of contraction, while inputs were bought at a stronger pace and business confidence strengthened,” Lima said.

Despite strong growth in order book volumes, Indian goods producers saw another reduction in payroll figures. In many cases, this was attributed to efforts to observe social distancing guidelines. Employment has now declined for six consecutive months.
“One area that lagged behind, however, was employment. Some companies reported difficulties hiring workers, while others suggested that the number of staff had been kept to a minimum amid efforts to observe social distancing guidelines,” he noted Lime.
On the pricing front, producer prices rose for the first time in six months, reflecting a rebound in input costs, according to the survey.
Looking ahead, nearly a third of manufacturers expect production growth in the next 12 months, compared with 8% forecasting a contraction, which is the highest overall optimism in more than four years.
“When we look at the average PMI for the second quarter of fiscal year 2020/21, the result contrasts sharply with that observed in the first quarter: an increase from 35.1 to 51.6. Although the uncertainty about the pandemic of Covid-19, producers can at least for now enjoy recovery, “Lima said.