HSBC’s India Manufacturing PMI jumped to 55.1 in September, up from 52.8 in August, marking the strongest expansion in seven months.
The lift was driven by a surge in both domestic and overseas orders, with electronics, food, pharma and textile producers reporting record sales. Export demand from Brazil, Europe, the UAE and the US also accelerated.
Hiring surged to its fastest pace since May, as factories added 4,200 new jobs across 400 surveyed plants. Pranjul Bhandari, HSBC’s chief India economist, said the momentum “reflects a renewed confidence in the coming months.”
Finished‑goods inventories climbed for the third straight month, registering the second‑fastest rise in 11‑half years. Companies stockpiled to meet the anticipated uptick in demand, even as input costs edged up.
Output forecasts were upgraded, taking overall optimism to a four‑month high. Analysts now expect the PMI to stay above 50 in October, with the next reading slated for release on 28 September.
The data set the stage for a potential shift toward a more robust growth trajectory as factories prepare to meet the rising demand wave.