India’s Flash Manufacturing And Services PMI Ease In September: HSBC
The HSBC India Manufacturing PMI eased to 58.5 from 59.3 in August, while the Services PMI slipped to 61.6 from 62.9.
India’s manufacturing and services sectors showed signs of moderation in September, according to Flash HSBC India Composite PMI. The HSBC India Manufacturing PMI eased to 58.5 from 59.3 in August, while the Services PMI slipped to 61.6 from 62.9.
The flash Composite PMI, which combines both sectors, also declined to 61.9 from 63.2 in the previous month, indicating a slight slowdown in overall business activity. However, the index has stayed above the 60 mark for four consecutive months, signaling the economy’s resilience.
September data showed another substantial increase in new business placed with Indian private sector companies. Several companies suggested that demand conditions remained favourable, but others indicated that competitive pressures restricted order intakes at their units.
International sales trends diverged across the manufacturing and service economies. In the latter, growth slowed to the joint-weakest since March 2025, contrasting with a quicker upturn at goods producers. Subsequently, aggregate new export order volumes increased at the softest pace in six months.
The proportion of companies indicating job creation in the aforementioned segments stood at around 3% and 5% respectively. The vast majority of survey participants reported having sufficient labour for current requirements.
Cost pressures remained more pronounced in India's service economy. That said, a slowdown here contrasted with a pick-up in the manufacturing industry. Across the private sector as a whole, overall expenses saw a less pronounced increase in September.
Private sector firms' assessments of future output were strongly positive in September, with the overall level of confidence rising to a seven-month high. Capacity expansion, competitive pricing, demand strength, efficiency gains and marketing efforts featured in the anecdotal evidence as the main determinants of optimism. Some firms also hope to benefit from the GST rate cut.
Earlier in August, Indian manufacturing growth remained resilient as the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index indicated the fastest improvement in operating conditions in 17-and-a-half years.
