The HSBC Flash India Composite Purchasing Managers’ Index (PMI) rose to 56.7 in October from 55.9 in the preceding month. The reading was 60.4 a year ago. A reading above 50 signals expansion and one below indicates contraction. “Private-sector manufacturing activity continued to expand, with growth of output and new orders broadly unchanged at last month’s levels,” said Pranjul Bhandari, chief India economist at HSBC. Manufacturing PMI declined to 54.9 in October from 55.1 in September, due to a slowdown in job creation. In contrast, services activity increased to 56.2 from 55.2 during this period.
Employment across the private sector increased slightly in October, as firms remained reluctant about hiring, citing sufficient staffing levels to meet current workloads. Business confidence for the coming year strengthened to its highest level since May, driven by expectations of further improvements in market conditions. International demand also supported growth, with export orders expanding at the fastest pace in six months. Panellists reported receiving new orders from the United States, the United Kingdom, West Asia and Bangladesh. “Manufacturers responded by increasing their stocks of purchases and finished goods,” said Bhandari.
Meanwhile, inflationary pressures continued to ease in October. Input cost prices slowed to their lowest level in almost a year, while output price inflation moderated to its weakest pace since March 2025. “Where input prices increased, higher steel and transportation costs were mentioned,” the report said.