India’s private sector growth hits four-month peak at 56.7
India's HSBC Flash Composite PMI climbed to 56.7 in October, up from 55.9 the prior month, marking its best level in four months as services expansion offset softer factory hiring.
Twelve months earlier, the composite index had been considerably higher at 60.4. Under the PMI methodology, any figure above 50 indicates growth in activity, whereas a number below that threshold points to contraction.
Services businesses drove the improvement, with that sub-index climbing to 56.2 from 55.2. Manufacturing, however, cooled slightly, dipping to 54.9 from 55.1 as companies pulled back on new hiring. HSBC’s chief economist for India, Pranjul Bhandari, said factory output and incoming orders essentially matched the previous month’s pace without much change.
Across the private sector, job creation edged up only marginally, as many firms said their current workforce levels were already sufficient, making them hesitant to add staff. Overseas demand told a different story, with export orders climbing sharply and underscoring strong foreign appetite for Indian goods and services.
Price pressures continued to cool as well. The pace of input cost increases slowed to its weakest in nearly twelve months, and output price inflation eased to its lowest since March 2025. Among businesses that did report higher input costs, steel and transport expenses were the most commonly cited drivers.
The combination of firmer private-sector activity and easing price pressures could influence how the Reserve Bank of India approaches monetary policy, with knock-on effects for the rupee. Meanwhile, the strength in export orders offers an encouraging signal for India-focused equities and sectors tied closely to trade.
Source: Economic Times Markets