India's private sector activity hits 4-month high in October
What's the story
India's private sector activity witnessed a significant surge in October, marking its fastest growth in four months. The increase was driven by a rise in new orders and a decline in price pressures. The HSBC Flash India Composite Output Index, which measures the combined performance of manufacturing and services sectors, jumped to 56.7 this month from September's 55.9 reading.
Performance
A marked expansion in business activity
The Flash India PMI Composite Output Index's reading indicates a marked expansion in business activity and the fastest growth since June. However, it still remains below the average recorded so far in 2026, according to HSBC's survey data.
Order growth
New business growth accelerates in October
The survey also revealed that new business growth accelerated in October, aided by the fastest increase in new export orders in six months.
Companies reported receiving orders from several markets, including the US, UK, West Asia, and Bangladesh.
Despite this surge, hiring slowed down with employment rising only marginally at its slowest pace so far this year.
Price stability
Input-cost inflation slows for 7th consecutive month
The survey also found that inflationary pressures continued to ease in October.
Input-cost inflation slowed for the seventh consecutive month, hitting its lowest level in nearly a year.
The moderation was observed across both manufacturing and services sectors, although higher steel and transportation costs were still cited as sources of input-price pressure.
Output-price inflation also eased, with selling prices rising at their slowest pace since March 2025.