India's business activity expanded at its fastest pace in four months in October, as stronger orders drove a services-led pickup, a preliminary survey showed on Friday, October 23. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 56.7 this month from September's final 55.9, beating a Reuters poll median forecast of 56.1, PTI reported.
Source: The Hindu BusinessLine (PTI)
A reading above 50 separates growth from contraction. The October reading, however, remains below this year's average, the survey noted.
Services led, manufacturing eased
The services PMI rose to 56.2 from 55.2, driving the majority of the acceleration in private-sector output, Reuters reported via Traders Union. Manufacturing output edged higher, but slower recruitment pulled the sector's headline PMI down to 54.9 from 55.1.
Source: Traders Union (Reuters)
Hiring stalls, cost pressure eases
Demand strengthened but employment was unchanged, ending a nine-month hiring streak. Companies said existing staffing was sufficient to handle rising workloads, while overall backlogs fell at the joint-fastest pace in nearly six-and-a-half years.
International demand provided support, with overall export orders expanding at the fastest pace in six months, though the improvement was concentrated among goods producers as growth in foreign requests for services weakened. On prices, input-cost inflation eased to its lowest in almost a year and selling-price increases were the weakest since March last year. Business confidence recovered to its highest since May, but was below this year's average.
The flash PMI is an early survey of purchasing managers at about 400 manufacturers and 400 service providers. Above 50 means activity is expanding; October's 56.7 points to healthy growth led by services, with hiring — not demand — as the weak spot.