India's manufacturing sector expanded sharply in September, ending a three-month slowdown as robust demand drove the fastest growth in factory activity in seven months, revived hiring, and lifted business confidence, a private survey showed on Thursday.

PMI Overview

The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, jumped to 55.1 in September from a five-year low of 52.8 in August but was lower than a preliminary estimate of 55.7. The reading was the highest since February. A PMI reading above 50.0 indicates growth in activity.

Key Findings

  • New orders rose at the fastest pace since February, driven by stronger demand for electronic, food, pharmaceutical, and textile products.
  • Export orders accelerated, with manufacturers citing increased demand from clients in Brazil, Europe, the UAE, and the US.
  • Output rose sharply, with the rate of expansion accelerating to its strongest since May, supported by new business orders and high demand.