Business EconomyPosted at: Oct 1 2026 2:29PM


India Manufacturing PMI hits 7-month high in September on stronger orders, hiring

New Delhi, Oct 1 (UNI) India's private sector manufacturing activity gained momentum in September, with factory output, new orders and employment improving during the month, according to the latest HSBC India Manufacturing Purchasing Managers' Index (PMI).
The manufacturing PMI climbed to 55.1 in September from 52.8 in August, marking the strongest expansion in seven months. The index has remained above the 50-point mark, which separates growth from contraction, for 59 consecutive months.
The September reading was, however, slightly below the flash estimate of 55.7 released last month. Despite the monthly improvement, the average manufacturing PMI for the second quarter of FY27 stood at 53.8, its weakest level since the corresponding quarter of 2021.
Stronger demand was a key driver of the improvement in manufacturing activity. New orders increased at a faster pace during September, helping factory output record its sharpest growth in four months.
Surveyed companies reported stronger demand for electronic goods, food products, pharmaceuticals and textiles. The increase in overall new business was the fastest since February, indicating a broad-based improvement in demand conditions.
Export demand also strengthened during the month. New export orders rose at a faster pace, with manufacturers reporting increased business from markets including Brazil, Europe, the United Arab Emirates and the United States.
Among the various categories, intermediate goods recorded the strongest gains in both new orders and output. Capital goods, in contrast, continued to register growth but expanded at a slower pace than in August, making it the weakest-performing segment during the month.
Hiring conditions also improved. After easing in August, employment growth picked up in September, with the pace of job creation reaching its highest level since May.
The improvement in manufacturing activity came alongside renewed cost pressures. Companies reported higher prices for electronic components, pharmaceutical products and steel, resulting in a faster increase in overall input costs compared with August.
Despite the acceleration, input-cost inflation remained below its long-term average. Manufacturers also raised selling prices at a faster pace during September, although the increase remained below the historical trend.
Cost pressures were strongest among intermediate goods producers, while capital goods manufacturers faced the least pressure. Consumer goods producers recorded the sharpest increase in selling prices during the month.
The September PMI data point to a stronger end to the quarter for India's manufacturing sector, with domestic and export demand supporting new business, production and hiring even as input costs continued to rise.UNI VK AAB
Tags: #India Manufacturing PMI hits 7-month high in September on stronger orders# hiring
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