Inflation and Monetary Policy Influence India's Purchasing Managers' Index for September 2024
Inflation and Monetary Policy Affecting PMI in September 2024
The decline of India's composite Purchasing Managers' Index (PMI) to 59.3 in September marks the lowest level for 2024, down from an upwardly revised 60.7 in August. This significant drop is driven by slower manufacturing and services sector activity as demand eases. While manufacturing activity eased to 56.7 from 57.5, services saw a decline from 60.9 to 58.9.
Business Confidence and Employment Trends
Despite the dip in the PMI, employment levels continued to grow, supported by robust business confidence. The service sector noted its steepest growth in hiring since August 2022 as companies increased staff to meet new orders.
Input Costs and Pricing Dynamics
Additionally, input cost inflation picked up pace in September while the rate of output charge increases slowed, suggesting greater pressure on profit margins for manufacturers.
Expectations for Future Growth
Confidence among firms remains above average since the series started in 2012, indicating optimism about securing new business over the next 12 months which should support future growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.