Manufacturing PMI for India decelerated to 55.1 in September 2022
The manufacturing PMI for India recorded a second consecutive fall in September 2022, to 55.1, from 56.2 in August, making this fall much sharper than the previous one, even as it continued to remain in the expansionary phase.
The output index shrunk to 57.3 in September, by 3.6pts over the August figure, while the fall in new orders index was less pronounced, which reduced by 1.9pts over the same period, to 58.6. However, the increase in new export orders continued over September, reaching 55.2, from 53.9 previously. The employment index also expanded to 50.7, turning around after decelerating for three straight months since June. The backlogs of work index, which shows the levels of unfinished orders, climbed down to 50.6 in September, after a sharp increase to 52 in August.
The total quantity of purchases index decelerated a second month in a row, to 56.0 in September, a decrease of 1.8pt over August. Over the same period, on one hand, the stocks of purchases index (the level of inventory purchases) increased to 54.8, by 0.3pt over the August figure, while on the other hand, the stocks of finished goods index, representing the volume of finished products that are awaiting sales, slowed to 46.3, from 48.9. Suppliers’ delivery times, turned into contraction in September, moving to 49.4, from 50.8 in the previous month, implying a shortening of average lead time. Input prices reduced to another new low since October 2020, to 53.9, signaling a respite in the upward movement of prices for a fifth consecutive month. The output price index, which had picked up in August, also eased to 51.8 in September, marking a drop of 0.9pp over August. The orders to inventories ratio moved upwards to 1.3 in September, the highest since February 2022. Capacity utilization grew to 50.6, marking a second consecutive increase.
Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q3 2022 report.