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India's private sector business activity signals continued growth in October: Flash PMI data
Oct-23-2026

India's private sector business activity signalled continued growth in October 2026, supported by stronger new orders and easing inflationary pressures. According to the data report, the HSBC Flash India PMI 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 - rose to 56.7 in October from final reading of 55.9 in September, pointing to a marked monthly expansion of business activity and one that was the fastest since June.

As per the report, improving market conditions and greater new order volumes supported the rise in output. The rate of expansion in new business also quickened in October, with total new orders supported by the fastest rise in new business from abroad in six months. Despite the sharper rises in output and new orders, companies in India were more cautious around hiring decisions in October. In fact, employment increased only marginally and at the slowest pace in the year-to-date. Services staffing levels were unchanged, ending a nine-month sequence of job creation, while manufacturing workforce numbers rose slightly. 

The slowdown in job creation in the manufacturing sector caused the HSBC Flash India Manufacturing PMI to tick down to 54.9 in October from 55.1 in September. However, HSBC Flash India Services PMI Business Activity Index rose to 56.2 in October from September’s final reading of 55.2. Looking to the future, companies in India remained optimistic that business activity will increase over the coming year amid expectations that market conditions will continue to strengthen. Business confidence improved to the highest since May, but was still below the average seen during 2026 so far. Optimism strengthened across both manufacturing and services.


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