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India's private sector activity eases to five-month low in October
Oct-24-2025

India’s flash Purchasing Managers’ Index (PMI) data report has showed that private sector activity in India continued to increase sharply in October, but growth lost momentum amid a slowdown in the service economy. The HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - fell to 59.9 in October from 61.0 in September.

According to the report, new orders placed with private sector companies in India expanded sharply in October but the rate of growth slowed to the weakest in five months. The softer increase in sales stemmed from a loss of growth momentum in the service economy as goods producers registered a slightly quicker rise than in September. International demand for Indian goods and services remained favourable in October, though companies noted a softer upturn than in September. 

Besides, the report showed a moderate expansion in private sector employment across India, with the rate of growth matching that seen in September and therefore being the joint-slowest since April 2024. Several companies left payroll numbers unchanged amid sufficient capacity for current requirements. Further, price trends were mixed, with input costs increasing at the weakest pace since June and charge inflation quickening since September. 

However, the HSBC Flash India Manufacturing PMI - a weighted average of the New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Purchases indices - rose from 57.7 in September to a two-month high of 58.4 in October. The latest reading was indicative of a substantial improvement in manufacturing conditions. Businesses remained optimistic regarding growth prospects, though sentiment faded at the start of the third fiscal quarter.


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