HSBC’s flash India Composite Purchasing Managers’ Index (PMI) rose to 56.5 from August’s 54.3, its highest since June and back above its long-run average. It exceeded the Reuters poll median forecast of 54.4. Readings above 50 indicate expansion.
But the rebound did not reverse the quarter’s broader slowdown. Based on September’s preliminary reading, the composite index averaged 55.1 this quarter, down from 58.2 in April-June, suggesting softer growth in Asia’s third-largest economy after a forecast-beating 7.8% expansion last quarter.
The manufacturing PMI climbed to 55.7 from 52.8, its highest in seven months, as output and new orders grew faster. Goods producers also resumed hiring after a marginal reduction in August.
The services index rose to 55.8 from 54.1. However, new exports increased at the slowest pace in 33 months, offsetting a modest pickup in manufacturing exports and dragging overall export growth lower. Hiring in the services sector also lost momentum.
Overall input-cost inflation eased to its lowest since January, driven by services, offering businesses some relief. Yet selling-price inflation was broadly unchanged, suggesting consumers saw scant relief from rising prices.
Business confidence about the coming year rose to a four-month high.