India Private Sector Activity Hits Six-Month High in October

India's private sector business activity grew at its fastest rate since June, with the HSBC Flash India Composite Purchasing Managers' Index rising to 56.7 in October from 55.9 in September. This expansion was fueled by increased domestic and international demand, particularly within the services sector, which saw its PMI rise to 56.2.

Export orders for goods producers expanded at the fastest pace in six months. Pranjul Bhandari, Chief India Economist at HSBC, noted that while output and new orders remained broadly unchanged from the previous month, the growth masked the fastest increase in new export orders since June 2025.

Despite the growth in activity, hiring slowed to its lowest level of the year. Services companies ended a nine-month hiring streak, and manufacturing recruitment saw only marginal increases as firms relied on existing staff. Business confidence recovered to its highest level since May, though it remains below the 2026 average. Additionally, input-cost inflation eased to its lowest level in nearly a year.