India's manufacturing sector cools off in September: PMI
India's manufacturing sector cooled off a bit last month, with HSBC's India Manufacturing Purchasing Managers's Index (PMI), compiled by S&P Global, dropping to 57.7 from August's 59.3—its slowest pace in four months, but still showing healthy growth.
Softer new orders and output were behind the dip, though export demand actually picked up despite tough competition.
Input costs jump sharply, leading to rise in factory prices
Manufacturers are dealing with their highest input cost jump since May, leading to the fastest rise in factory prices since October 2013.
To keep up, companies have hiked their selling prices sharply.
Meanwhile, job growth has been sluggish—only about 2% of firms added staff during this stretch.
Business confidence hits 7-month high
Even with these challenges, business confidence just hit a seven-month high as GST cuts and hopes for better demand lift spirits.
Still, HSBC's chief economist points out that US tariffs are a big hurdle ahead—even as local sentiment gets a boost.