India Composite PMI Confirmed at 4-Month High

India’s HSBC Composite PMI eased to 56.2 in October 2026 from a flash estimate of 56.7 but remained above September’s 55.9, marking the fastest expansion in private-sector activity since June. Growth was supported by stronger services activity, which offset slower factory output. New orders increased at the fastest pace since June, signaling resilient demand. However, job creation softened, while business confidence weakened from September. On the price front, input cost pressures eased across both manufacturing and services, bringing overall input inflation to an 11-month low. Output price inflation also moderated to its weakest pace since February 2022, with price pressures remaining more pronounced in manufacturing than in services.

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.