India October business growth hits 4-month high; hiring stalls, PMI shows
India's business activity expanded at its fastest pace in four months through a strong services-led pickup. The Composite Purchasing Managers' Index rose to 56.7 in October, exceeding forecasts due to increased orders. Despite this growth, hiring remained stagnant as companies managed workloads with current staff. Price pressures eased, resulting in lower input-cost inflation across both sectors.…
India's business activity surged to its fastest pace in four months during October, driven by stronger orders in the services sector, according to a preliminary survey. The HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 56.7 from September's final 55.9, surpassing a Reuters poll median forecast of 56.1. This indicates healthy growth, though the figure remains below the year's average.
The services PMI alone climbed to 56.2 from 55.2, propelling private-sector output growth. Despite this, hiring almost stalled as companies managed rising workloads with existing staff, marking the end of a nine-month hiring streak. Manufacturing output saw a modest increase, but a slower hiring pace dragged the sector's headline PMI down to 54.9 from 55.1.
International demand bolstered export orders, which expanded at the fastest pace in six months. However, the gains were primarily among goods producers, while service demand weakened. Price pressures eased across both sectors, with input-cost inflation hitting its lowest level in nearly a year and selling-price increases the weakest since March.
Business confidence rebounded to its highest level since May but was still below the year's average.
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.
