India’s Purchasing Managers Index (by HSBC/Markit) has come in at low levels in September. Manufacturing PMI comes in at 49.6, marginally up from 48.5 in August, but is still below the 50 mark, indicating contraction.
The Services PMI (the other component of the composite PMI) was at an abysmal 44.6 (from 47.6 in August), taking the Composite PMI to a low not seen in 4.5 years:
- Service sector output contracts at sharp pace
- New business received by private sector firms decrease at quickest pace since February 2009
- Private sector employment falls for first time in 19
Markets aren’t reacting yet, but this does look bad.