India's factory growth hits 7 month high in September, thanks to demand and hiring boost
India's manufacturing sector saw its strongest growth in seven months in September, with the HSBC India Manufacturing PMI rising to 55.1. The expansion was driven by increased domestic and international demand, leading to higher production and a boost in hiring.
Why it matters
This data indicates a robust recovery in the Indian industrial sector, suggesting positive economic momentum heading into the final quarter of the year.
India’s manufacturing activity scaled up sharply in September, as stronger demand pushed up sales and production, while companies stepped up hiring and stock-building.The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 55.1 in September, from 52.8 in August, marking the strongest improvement in the sector’s health in seven months. A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.The recovery in factory activity was supported by both domestic and overseas demand. Stronger new orders helped drive production higher, with demand across electronics, food, pharma and textiles taking total sales growth to its highest level since February.Export orders also gained momentum during the month, with manufacturers reporting increased business from clients in Brazil, Europe, the UAE and the US."India's factory sector ended the quarter on a firmer footing.
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