New Delhi, Oct. 1 -- Business momentum in India's manufacturing sector has taken a U-turn. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index rose to a seven-month high of 55.1 in September after hitting a five-year low of 52.8 in August. Faster increases in new orders and output aided recovery and supported job creation. Higher demand for electronic, food, pharmaceutical and textile products drove a sharper increase in new business intakes.

Indian manufacturers upgraded their output forecasts. The PMI sub-index gauging business confidence rose to a four-month high in September. This optimism was underpinned by new enquiries in the pipeline and expectations that demand conditions will remain favourable, said the ...