Stronger output and New orders buioy private sector growth to five-month high

India’s private sector business activity accelerated in October, propelled by robust output and new orders, as indicated by the HSBC Flash PMI®. The HSBC Flash India PMI Composite Output Index advanced to 56.7 in October from 55.9 in September, representing the sharpest expansion since June.

Expansion accelerated in both the manufacturing and services sectors, underpinned by a surge in export orders representing a six-month high. Nevertheless, job creation moderated to a negligible extent, as services employment remained static and manufacturing hiring saw a slight uptick. Work backlogs contracted at the steepest rate since August 2021.

The HSBC Flash India Manufacturing PMI moderated to 54.9 from 55.1 in September, accompanied by a deceleration in purchasing activity growth. Inventories expanded amid heightened demand and reduced supplier delivery durations.

Easing inflationary pressures were underscored by input cost inflation attaining its lowest level in almost a year and output price inflation decelerating to its slowest pace since March 2025. Business confidence advanced to its highest level since May.