India’s manufacturing sector activity moderated to a five-month low in September with new orders slowing down, as per the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI), which eased to 57.5 from 58.6 in August. A reading of 50 on the survey-based index reflects no change in activity levels.
While inflation in input costs eased to the lowest in over three years, firms raised output charges at a sharper pace than the long-run average which could hurt sales prospects in coming months. Firms cited higher labour costs combined with upbeat business confidence and buoyant demand, as the rationale for the price hikes effected in September.