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Informist, Friday, Oct. 24, 2025

 

--India Oct flash composite PMI output index 59.9 vs 61.0 Sept final 

--India Oct flash services PMI activity index 58.8 vs 60.9 Sept final 

--India Oct flash manufacturing PMI 58.4 vs 57.7 Sept final 

 

NEW DELHI – India's private sector activity in October expanded at the slowest pace in five months because of a slowdown in the services sector. The HSBC Flash Composite Purchasing Managers' Index fell to 59.9 in October from 61.0 in September, S&P Global said Friday. The manufacturing sector continued its growth momentum in October, S&P Global, which compiles the PMI, said in a release. 

 

The flash manufacturing PMI rose to 58.4 in October from the final print of 57.7 in September. The flash services PMI moderated to a six-month low of 58.8 in October from 60.9 a month ago. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"The HSBC flash manufacturing PMI picked up a tad, likely on the back of GST (goods and services tax) rate cuts which are buoying domestic demand and curbing cost pressures," Pranjul Bhandari, chief India economist at HSBC, said in the release. "New orders and output, both, are above the average Jan-Jul levels. However, the drag from US tariff continues to show up in new export orders and future optimism, which remain below the Jan-Jul levels."

 

New orders expanded at the slowest rate in five months in October, largely because of a loss in growth momentum in the services economy. Manufacturing firms saw a slightly quicker rise in new orders than in September, S&P Global said. Service providers cited competition, floods, and landslides for lower sales growth. International demand for Indian goods and services was the weakest since March, reflecting a slower rise in the manufacturing industry, S&P Global said.

The rate of job creation in October was unchanged from September and joint-slowest since April 2024. Anecdotal evidence indicated that several companies left payroll numbers unchanged amid sufficient capacity for current requirements, S&P Global said. 

Price trends were mixed this month with input costs increasing at their weakest pace since June and prices charged to customers rising from September. "Both manufacturers and service providers welcomed softer cost pressures, which they attributed to GST relief. The rise in expenses was the least marked since June," S&P Global said. 

 

Charge inflation rose in October, with firms citing higher operational costs, usage of premium inputs, and greater outlays on labour and transportation for raising selling prices. "Manufacturers registered the stronger rate of increase, although an acceleration was likewise registered in the service economy," S&P Global said. 

 

Businesses remained optimistic regarding growth prospects, though sentiment faded in October. "According to panel member reports, there were some concerns around competitive pressures, market conditions and demand trends. Nevertheless, firms hope to benefit from the GST rate cut, marketing efforts, new product releases and tech investment," S&P Global said.  End

 

Reported by Shubham Rana

Edited by Tanima Banerjee

 

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