New Delhi, Oct. 1 -- India's manufacturing sector regained momentum in September as stronger domestic and overseas demand pushed up new orders and output, while companies resumed hiring, according to the HSBC India Manufacturing Purchasing Managers' Index (PMI), released on Thursday.

The seasonally adjusted index rose by more than two points to 55.1 in September from 52.8 in August, marking the strongest improvement in the sector's health in seven months. That said, the average for the second fiscal quarter stood at 53.8, its lowest since the same period in 2021, indicating that the stronger September reading followed a relatively softer quarter for the manufacturing sector.

The September recovery comes against the backdrop of higher ex...