India Composite PMI Revised Slightly Lower

India’s HSBC Composite PMI stood at 55.9 in September 2026, down from a flash reading of 56.6 but up from 54.6 in the previous month. The latest result marked the highest level since June, although the average for the second fiscal quarter was the lowest since Q1 2022. New order growth accelerated, but its quarterly performance remained the weakest since the end of fiscal 2021/22, pointing to softer underlying demand momentum. Meanwhile, the resumption of job creation in manufacturing, alongside sustained employment growth among service providers, lifted overall private-sector employment. Price pressures also eased, with firms reporting the weakest increases in input costs in nine months and output charges in three months, suggesting a moderation in inflationary pressures.

India’s HSBC Composite PMI rose to 56.5 in September 2026 from a final 54.6 in August, flash data showed, marking the fastest expansion in private-sector activity since June and remaining above its long-run average. Output growth accelerated modestly in both manufacturing and services, with demand strengthening across the two sectors. New export orders continued to increase, although growth slowed to its weakest pace in nearly three years, reflecting softer gains among service providers despite a marginal acceleration in manufacturing. Employment rose solidly, with both sectors adding staff at broadly similar rates as output and new orders continued to expand. Outstanding business increased marginally after declining in the previous two months. On prices, input-cost inflation eased to its lowest level since January, while selling-price inflation was broadly unchanged. Business confidence strengthened across manufacturing and services, lifting overall optimism to a four-month high.

India’s HSBC Composite PMI stood at 54.3 in August 2026, down slightly from the flash reading of 54.6 but unchanged from July's reading. The latest result signalled a solid pace of private-sector growth, although it remained the joint-slowest in 4-1/2 years and below the historical trend. Despite accelerating from July, total sales growth remained subdued, with the rate of expansion the second-weakest since February 2022. Growth in goods production slowed, while service providers recorded a faster upturn. Aggregate employment increased at the fastest pace in 14 months, as robust hiring among service firms more than offset continued job shedding in manufacturing. Meanwhile, composite input-cost inflation eased to a seven-month low, although the pace of charge inflation accelerated to its strongest since April.