The booming private sector in India is beginning to slow down, with the September Purchasing Managers Index (PMI) falling to 61.9 compared to 63.2 in August. Although certain figures continue to be well-above the 50-point mark indicating expansion, they indicate a slowing of demand and a reduction in the rate of job creation.
The moderation,analysts say, indicates increased borrowing costs and restrained world trade, yet India is among several high-growth, major economies in the world. Services still performed better than manufacturing, and companies complained that they were under pressure due to increases in input prices. Economists believe the slowdown to be a natural rebound following months of record activity.