Indian manufacturers saw output growth wane in September, mirroring a slower increase in new orders. Staffing levels were, consequently, reduced and purchasing activity rose at the weakest pace since December 2013.

Reflecting falling commodity prices, input costs decreased on average, and firms subsequently lowered their charges. Dipping to a seven-month low of 51.2 in September (August: 52.3), the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance -was consistent with a marginal improvement in business conditions across the sector.

That said, the PMI averaged 52.1 for the July-September quarter, above the prior reading of 51.8. Weighing on the PMI were slower increases in new orders and output. September data pointed to the weakest rise in production since May last year, with the slowdown evident across the three broad areas of the manufacturing economy.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said: "Despite having been supported by sustained increases in new work, growth of Indian manufacturing production in September was weighed down by a difficult economic climate.

"Nonetheless, the region's growth prospects for the July-September quarter are encouraging. According to PMI data, the manufacturing sector looks set to provide a stronger contribution to GDP than it did in the April-June quarter."

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