Eurozone factory growth hits four-year high in September

India's manufacturing sector expanded sharply in September, ending a three-month slowdown as robust demand drove the fastest growth in factory activity in seven months, revived hiring and lifted business confidence, according to a private survey released Thursday. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S P Global, jumped to 55.1 in September from a five-year low of 52.8 in August, though this was lower than a preliminary estimate of 55.1. The reading was the highest since February.

New orders rose at the fastest pace since February, driven by stronger demand for electronic, food, pharmaceutical and textile products. Export orders also accelerated, with manufacturers citing increased demand from clients in Brazil, Europe, the UAE and the US. Output rose sharply, with the rate of expansion accelerating to its strongest since May, supported by new business orders and high demand. Companies bought more materials and built up stocks to prepare for anticipated sales, with finished-goods inventories recording their second-largest increase in nearly 12 years.

Rising demand also led to a resumption in hiring, with employment expanding at its strongest rate since May, recovering from an outright decline in August—the first drop in the employment series in some time.