India Composite PMI Rises from Over 4-Year Low

India’s HSBC Composite PMI rose to 56.7 in October 2026 from a final 55.9 in the prior month, flash data showed. It was the fastest growth in private-sector activity since June, with the services sector accelerating while factory output stayed resilient. New orders quickened, and foreign sales increased the most in six months, reflecting robust demand from the U.S., the UK, the Middle East and Bangladesh. However, employment rose at its slowest pace this year. Backlogs of work fell for the third time in four months, with the pace of depletion matching August 2021’s 6-1/2-year high and ranking among the sharpest since the global financial crisis. Price pressures continued to ease, as input cost inflation slowed for a seventh straight month to its lowest in near a year, while output price inflation hit its lowest since March 2025. Looking ahead, confidence reached its highest since May on expectations of stronger market conditions, although it remained below the average for 2026 so far.

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.