Private sector growth hits three-month high
Manufacturing PMI climbed to a seven-month high of 55.7 in September from 52.8 in August, while services activity increased to 55.8 from 54.1. Demand strengthened across both manufacturing and services, with manufacturing recording a higher increase. Sales growth also remained stronger among manufacturers than service providers, reaching a seven-month high.
India's private sector growth surged to a three-month peak in September, driven by robust activity in both manufacturing and services, according to a survey released on Wednesday. The HSBC Flash India Composite Purchasing Managers Index (PMI) climbed to 56.5 in September from 54.3 in August, indicating expansion. This was the first time since September 2025 that the reading exceeded 50, signifying growth rather than contraction.
Business confidence among firms about the year ahead also hit a four-month high in September. Manufacturing PMI reached a seven-month high of 55.7, while services activity increased to 55.8, outpacing manufacturing. Manufacturing activity improved due to strong output growth, rising new orders, and a surge in input purchases, which reached their fastest rate since February.
Input prices also climbed, and inventories of finished goods hit an 11-and-a-half-year high. Manufacturers reported a spike in demand for aluminium products, electronic goods, food, pharmaceuticals, and new product models. While export orders expanded, growth slowed from August and was the weakest in nearly three years, primarily due to weaker performance by service firms.
Manufacturing firms, on the other hand, experienced a marginally stronger increase in new export business.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Private sector growth hits three-month high economictimes.indiatimes.com
