PMI for India’s manufacturing sector rises in September
- ByManjeet Singh | October 1, 2021
India’s manufacturing sector expanded in September as measured by the Purchasing Managers’ Index (PMI), which grew from 52.3 in August to 53.7 in September despite raw material shortages and rising fuel prices.
The third straight month of expansion for manufacturing was led by consumer goods, with international sales surging and the business confidence improving in anticipation of increasing production this year despite the pandemic. The PMI reading of 50 indicates no change in activity.
Employer numbers remained unchanged for the second consecutive month. According to the PMI surveys conducted in July, hiring had begun to pick up again after a 15-month streak of job losses for the sector. However, hiring paused in August due to a lack of demand.
In September, companies continued to buy extra inputs, but job creation did not change significantly, according to Pollyanna De Lima, economics associate director at IHS Markit, which compiles the PMI. Survey respondents cited government guidelines about shift work that prevented hiring.
As a result of easing COVID-19 restrictions and strengthening demand conditions, firms reporting growth cited favorable market conditions and improvements in sales volumes.
“Indian manufacturers lifted production to a greater extent in September as they geared up for improvements in demand and the replenishment of stocks. There was a substantial pick-up in intakes of new work, with some contribution from international markets,” Ms. De Lima said.
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