Mumbai: HSBC’s preliminary composite Purchasing Managers’ Index (PMI) for both sectors fell to 59.30 from 60.70 in August, as activity in both manufacturing and services slowed in the current month. This is the lowest expansion in 2024.
A fall in the PMI indicates that the expansion of the country’s private sector has slowed. An index above 50 indicates that the sector is expanding. September marked the 38th consecutive time the preliminary composite PMI has been above 50.
According to a survey prepared by HSBC, the private sector continued to expand but the growth in new orders was at the lowest level of the current year. However, the level of growth in the PMI has been higher than the long-term average.
According to the survey report, the increase in business confidence has resulted in strong growth in employment conditions. Employment growth in the services sector was the highest since August 2022. The survey report also said that companies are rapidly meeting the increase in new orders.
On the price front, prices of raw materials and production remained relatively stable in September. Service providers have seen the slowest increase in service tax rates in two and a half years. The preliminary PMI surveyed 75 to 85 per cent of the total 800 companies in the services and manufacturing sectors. 800 companies are surveyed every month to prepare the PMI.
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