Readings above 50 signal an improvement in business conditions from the previous month, while readings below 50 show a worsening.
Belying the hopes from the government, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) shows there has been no improvement in manufacturing employment since the Modi government took charge. When the manufacturing sectors of the United States, Japan and countries in Asia are all experiencing a flameout due to a decrease in export orders, it means that the virtuous circle will turn into a vicious circle.
Service providers raised their staffing levels in September, offsetting the fall observed in August.
Meanwhile, staff numbers declined at the quickest rate since the start of 2009. It was the lowest level in five months.
The index has stayed above the 50-point line separating growth from contraction for over three years. Total new work was unchanged for the second month running, however, while new work from overseas rose only slightly.
The Nikkei Singapore PMI is based on data compiled from monthly replies to questionnaires sent to executives in over 400 private sector companies, selected to represent the structure of Singapore’s economy, including manufacturing, services, construction and retail.
Still, the steady loss of momentum in developing and emerging countries in recent months leaves the U.S.as the lone bright spot in the global economy and will raise questions about whether its central bank should risk raising interest rates this year for the first time in nearly a decade.