India’s private-sector economy gained speed in October, led by services and export orders, but hiring nearly stopped, leaving the labor market less buoyant than output, an HSBC flash survey showed.
The HSBC Flash India Composite Output Index increased to 56.7 points from September’s final 55.9, its highest reading since June. A level above 50 indicates expansion from the previous month; it is not a percentage growth rate. Reuters reported a median forecast of 56.1 points for the index.
Services activity strengthened, with its index rising to 56.2 from 55.2. Manufacturing presented a mixed picture: its headline PMI slipped to 54.9 from 55.1, while the output measure ticked up to 57.6 from 57.5.
Employment across private businesses grew only marginally, the slowest pace reported so far in 2026. The services workforce held steady after nine months of additions, while manufacturing employment increased slightly. Firms said staffing levels could meet current workloads. The survey’s measure of unfinished work declined in three of the past four months.
New export orders posted their strongest increase in six months. Goods producers drove the improvement, while growth in overseas demand for services weakened.
The rate of input-cost increases eased for a seventh consecutive month, reaching its lowest point in almost a year. Companies’ selling-price increases were the mildest since March 2025. Business confidence also improved to its highest level since May, though it remained below the 2026 average.
KNN India reported that final October PMI readings were scheduled for early November.
