Private sector business activity grows in October

Business activity across India’s private sector grew during October, according to the latest India Flash PMI data. The HSBC Flash India PMI Composite Output Index reached 56.7 this month, climbing from the 55.9 recorded in September. This expansion in the combined output of manufacturing and service industries represents the quickest monthly growth rate since June.

The report attributes this rise in output to better market conditions and an increase in new order volumes. Total new business expanded at a faster pace, aided by the strongest growth in international orders seen in six months. Easing inflationary pressures also provided support to the overall business environment during the period.

Companies adopted a cautious approach to hiring, resulting in the slowest pace of job creation so far this year. While manufacturing workforce numbers grew slightly, staffing levels in the services sector remained unchanged. Consequently, the HSBC Flash India Manufacturing PMI moved to 54.9 from 55.1, whereas the HSBC Flash India Services PMI Business Activity Index climbed to 56.2 from 55.2.

Looking forward, firms expressed optimism regarding activity levels over the next year. Business confidence reached its highest point since May, driven by expectations that market conditions will continue to strengthen. This positive outlook was shared by companies in both the manufacturing and services sectors.

Based on company and agency reports. For information only; not investment advice.