India's manufacturing activity picked up pace in September. The final purchasing managers' index rose to 55.1, data released on October 1 showed.

The reading was up from 52.3 in August. A score above 50 means the sector is growing. September's figure points to a solid expansion.

New orders drove the rebound. Factories reported stronger demand from both domestic and overseas buyers.

Output also rose at a faster pace. Firms stepped up production to meet the new orders.

Employment in the sector held steady. Input cost pressures eased slightly, giving some relief to manufacturers.

Economists say the data is a positive sign for the economy. It comes ahead of the festive season, when consumer demand usually rises.

The PMI is compiled from monthly polls of purchasing managers. It has stayed above the 50 mark for several years, showing a long run of factory growth. The September rebound eases worries after August's dip. Stronger export orders also helped lift the index this month.