Private sector activity hits four month high in October

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The Economic Times daily newspaper is available online now. Read Today's Paper Private sector activity hits four month high in OctoberET BureauLast Updated: Oct 24, 2026, 12:25:00 AM ISTSynopsis

India's private sector activity experienced significant growth in October, reaching a four-month high as new orders increased. The HSBC Flash India Composite Purchasing Managers' Index rose to 56.7, signaling expansion. Manufacturing output and new orders remained stable, while services activity saw notable improvement. Employment increased slightly, although firms showed caution in hiring due to adequate staffing levels. International demand contributed to growth, with export orders expanding significantly during this period.

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Loading...×New Delhi: India's private sector activity accelerated to a four-month high in October, driven by an increase in new orders and improving market conditions, according to a survey released on Friday.

The HSBC Flash India Composite Purchasing Managers' Index (PMI) rose to 56.7 in October from 55.9 in the preceding month. The reading was 60.4 a year ago. A reading above 50 signals expansion and one below indicates contraction. "Private-sector manufacturing activity continued to expand, with growth of output and new orders broadly unchanged at last month's levels," said Pranjul Bhandari, chief India economist at HSBC. Manufacturing PMI declined to 54.9 in October from 55.1 in September, due to a slowdown in job creation. In contrast, services activity increased to 56.2 from 55.2 during this period.

Employment across the private sector increased slightly in October, as firms remained reluctant about hiring, citing sufficient staffing levels to meet current workloads. Business confidence for the coming year strengthened to its highest level since May, driven by expectations of further improvements in market conditions. International demand also supported growth, with export orders expanding at the fastest pace in six months. Panellists reported receiving new orders from the United States, the United Kingdom, West Asia and Bangladesh. "Manufacturers responded by increasing their stocks of purchases and finished goods," said Bhandari.

Meanwhile, inflationary pressures continued to ease in October. Input cost prices slowed to their lowest level in almost a year, while output price inflation moderated to its weakest pace since March 2025. "Where input prices increased, higher steel and transportation costs were mentioned," the report said.
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Read More News onIndia private sector activityHSBC Flash India Composite PMIOctober manufacturing PMIservices activity growthprivate sector employmentinflationary pressures in Indiainternational demand growthnew orders increaseeconomic expansion in Octobermarket conditions improvement
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