India: Economic conditions moderate in September
October 5, 2016
Activity in India’s manufacturing sector lost steam in September. The manufacturing Purchasing Managers’ Index (PMI), elaborated by Nikkei and IHS Markit, fell from August’s one-year high of 52.6 to 52.1. Despite the fall, the PMI remains above the 50-threshold that separates expansion from contraction, where it has been since January.
Slower rates of growth were recorded across the board with new orders, output and buying levels all registering softer expansions. In addition, job creation continued to remain marginal overall. Meanwhile, price pressures increased slightly, but remained below the long-term trend, with firms reporting a particularly noticeable increase in steel prices.
Meanwhile, the Nikkei services PMI fell from August’s over-three-year high of 54.7 to 52.0 in September. The result was above the 50-threshold that indicates expansion in the sector. According to Nikkei, business sentiment fell among service providers on the back of challenging market conditions.