Indian manufacturing activity slipped to a seven-month low in September, according to the latest Purchasing Managers’ Index (PMI).
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, fell to 51.2 in September from 52.3 in August, mirroring a slower increase in new orders, a release said.
The index has stayed above 50 points — indicating expansion in production — since November 2013. However, in September, staffing levels were reduced and purchasing activity rose at the weakest pace since December 2013, the release added.
Commenting on the data, Pollyanna De Lima, Economist at Markit and author of the report, said: “Despite having been supported by sustained increases in new work, growth of Indian manufacturing production in September was weighed down by a difficult economic climate. Nonetheless, the region’s growth prospects for the July-September quarter are encouraging.”
Slower increases in new orders and output weighed on the PMI. September data point to the weakest rise in production since May last year, with the slowdown evident across the three broad areas of the manufacturing economy. Growth of new work moderated to the weakest since June.
New business from abroad expanded at the slowest pace in the current 24-month sequence of growth and one that was marginal overall.