India's business activity hits 4-month high in October: PMI data

New Delhi: Activity across India's private sector expanded at the fastest pace in four months in October as stronger domestic and overseas demand lifted new orders, while inflationary pressures continued to soften, according to data released by HSBC on Friday.

The HSBC Flash India Composite Output Index -- which tracks combined activity in the manufacturing and services sectors -- rose to 56.7 in October from 55.9 in September. However, a reading above 50 indicates expansion.

As per the HSBC data, this is the strongest growth in business activity since June with manufacturers and service providers alike reporting improved market conditions and a rise in new orders.

Demand from overseas markets also strengthened with businesses recording the fastest increase in export orders in six months.

"Private-sector manufacturing activity continued to expand with growth of output and new orders broadly unchanged at last month's levels. However, the steady pace of new order growth masks the fastest increase in new export orders since June 2025," said Pranjul Bhandari, Chief India Economist at HSBC.

She further noted that manufacturers responded to stronger demand by increasing inventories of both raw materials and finished goods, while input cost inflation and selling price pressures continued to ease.

Meanwhile, employment growth across the private sector slowed with services companies halting net job additions after nine consecutive months of workforce expansion.

Manufacturing firms continued to add workers, albeit only marginally, according to the data.

Many companies indicated that existing staffing levels were sufficient to cope with current workloads, reducing the need for large-scale recruitment.

Also, outstanding business or backlogs of work declined for the third time in four months, while the rate of depletion was the joint fastest in six and a half years and among the strongest recorded since the global financial crisis suggesting firms were able to process work more efficiently.

In addition, the HSBC Flash India Manufacturing PMI came at 54.9 in October.

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