INDUSTRY
Manufacturing expands at a slower pace in September amid rosy business mood
- IBJ Bureau
- Oct 02, 2025
Manufacturing activity continued to expand in September but at a slower pace as the Manufacturing Purchasing Managers’ Index (PMI) stood at 57.7, down from 59.3 in August. However, tax relief for common man has boosted business optimism for the year ahead.
The survey, conducted by the adjusted HSBC India PMI, shows that new orders – both buying of output and input – rose at the slowest rates in four months, while job creation retreated to a one-year low. “The September headline index softened, but it remained well above the long-term average,” notes Pranjul Bhandari, the chief India economist at HSBC.
The September PMI data also highlights continued growth across the manufacturing industry, albeit with a mild loss of momentum, the survey has said, adding that growth has been curbed by competitive conditions. “There was a pick-up in growth of international orders at the end of the second financial quarter, as Indian manufacturers welcomed improvements in demand from Asia, Europe, the Americas and the Middle East,” the survey has noted.
On the price front, the survey, which took place between September 10 and 24, indicates quicker increases in input costs and selling prices. “The overall rate of inflation was solid and the quickest since May, though it remained below its long-run average,” it has said. Going ahead, the survey also notes that Indian companies continue to signal upbeat forecasts for production in the coming 12 months. Moreover, the overall level of confidence rose to a seven-month high.
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