India’s factory growth in September was the slowest since June but its output continued to expand according to the S&P Global India Services Purchase Managers’ Index released on Monday.

The Manufacturing Purchasing Managers’ Index fell to 55.1 in September from 56.2 in August. A score above 50 indicates expansion while a score below 50 denotes contraction.

The purchasing managers’ index is an indicator of business activity in the manufacturing and services sectors. S&P Global said that it takes into account new orders, output, employment, suppliers’ delivery times and stocks of purchases to calculate the purchasing managers’ index.

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“Despite easing to the weakest since June, the rate of growth was sharp,” found the survey. “Anecdotal evidence pointed to greater demand from domestic and international clients.”

September marked the 15th month in a row that manufacturing activity expanded. Although the pace of growth was slower, it was above the long-run average. The improvement due to new business growth, demand resilience and expanded operating capacities, noted the survey.

Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said the data shows that Indian manufacturing industry remains in good shape, despite considerable global headwinds and recession fears around the world.

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“Businesses also benefited from a notable moderation in price pressures,” De Lima noted. “Input costs rose at the slowest rate in almost two years as suppliers’ stocks improved in line with subdued global demand for raw materials and recession risks.”

Optimism about the future was at the highest level in over seven-and-a-half years. “Currency risks and the impact of a weaker rupee on inflation and interest rates could derail optimism during October,” De Lima added.

According to the S&P Global India Services Purchase Managers’ Index released last month, India’s services sector reported the sharpest rise in job creation in over 14 years in August.