New Delhi [India], October 24 : India's private sector growth eased in October as activity expanded at the slowest pace in five months, led by a slowdown in the services economy, according to the HSBC Flash India PMI press release.
The latest survey showed that while business output and new orders continued to grow, the momentum weakened from earlier months. The HSBC Flash India Composite Output Index, which tracks changes in the combined output of manufacturing and services, fell from 61.0 in September to 59.9 in October, the lowest level since May 2025. Despite the slowdown, the index still pointed to a solid expansion in overall business activity.
The release said the slowdown was mainly driven by lesser growth in the service sector, where companies cited tough competition and weather disruptions such as floods and landslides that affected sales. In contrast, the manufacturing sector showed a brighter picture, with the HSBC Flash India Manufacturing PMI rising to 58.4 in October from 57.7 in September, signaling a stronger improvement in operating conditions.
New business orders across the private sector expanded sharply in October, though at the weakest pace in five months. International demand also remained positive but slowed from September, with export growth easing to its weakest level since March. Manufacturers recorded a gentler increase in new export orders, while service providers noted that external demand softened further.
Employment continued to grow modestly, with companies adding staff at a pace similar to September's. The rate of job creation was among the slowest in a year and a half, as several firms reported that existing staff levels were sufficient for current workloads. Outstanding business volumes stayed largely unchanged in October, marking the end of nearly four years of backlog growth in the private sector.
On the cost front, the release noted a mixed picture. Input prices rose at the weakest pace since June, partly because of relief from goods and services tax (GST) adjustments, but selling prices increased faster. Businesses attributed higher charges to costlier labour, transportation, and the use of premium materials. Both manufacturers and service providers passed on part of their increased costs to customers.
Despite the moderation in growth, companies stayed optimistic about the year ahead. The outlook index, however, fell from September levels, with some firms expressing concerns about competition and demand conditions. Still, many businesses remained hopeful of gains from GST rate cuts, new product launches, marketing initiatives, and investment in technology.
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