New Delhi: India’s manufacturing sector activity eased in September, as new orders, output and input buying rose at the slowest rates in four months, while job creation retreated to a one-year low, a monthly survey said on Wednesday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index moderated from 59.3 in August to 57.7 in September, pointing to the weakest improvement in the health of the sector since May, even as tax relief has boosted business optimism for the year ahead. In the Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

“The September headline index softened, but it remained well above the long-term average,” said Pranjul Bhandari, Chief India Economist at HSBC.

The September PMI data highlighted continued growth across India’s manufacturing industry, albeit with a mild loss of momentum, the survey said, adding that growth was curbed by competitive conditions. The survey further noted that there was a pick-up in growth of international orders at the end of the second fiscal quarter, as Indian manufacturers welcomed improvements in demand from Asia, Europe, the Americas and the Middle East.