India's private sector continued its expansion in September, although the pace of growth slowed slightly compared with the previous month, as indicated by S&P Global's latest Purchasing Managers Index (PMI) survey released Monday. The seasonally adjusted headline flash India composite purchasing managers index (PMI) declined to 59.3 in September from 60.7 in August, but still struck well above the 50-marker that separates growth from contraction.
The composite PMI is a combination of the monthly performance of the manufacturing and service sectors. While the pace of growth has moderated from earlier in the year, it remains significantly above the long-term average, S&P noted. September recorded the slowest expansion of any month yet in 2024, according to the report.
The flash India seasonally adjusted manufacturing PMI posted at 56.7 in September, down from 57.5 in August. Similarly, the seasonally adjusted flash India Services PMI also slipped to 58.9 in September from 60.9 in August. In the manufacturing sector, strength was driven by robust new orders. "The expansion in total business activity (in manufacturing) generally reflected increasing new orders, which continued to rise sharply," indicated S&P Global.
For factory managers, the September PMI "signaled a further marked strengthening in business conditions for goods producers," S&P added. On the services side, the rise in employment in the sector was the steepest since August 2022 "as companies responded to higher new orders, often through the hiring of workers on a permanent basis," the report indicated.
Despite strong growth, India's inflation picture remained muted in August. The pace of input cost inflation in the Indian private sector remained relatively muted in September, and where costs rose, "firms generally linked this to higher prices for raw materials and electricity," S&P commented. Business confidence in both the manufacturing and service sectors improved in September, as operators expected to secure additional business, according to the survey results.
The September flash India PMI was compiled by S&P Global from survey responses received from 400 manufacturers and 400 service-providers from Sept. 9 through Sept. 18..