India business activity rebounds in September to 3-month high, PMI shows

A general view of the skyline in Mumbai, India, May 5, 2025. REUTERS

BENGALURU, Sept 23 (Reuters) – India’s business growth accelerated in September on stronger demand in both manufacturing and services, a ​preliminary survey showed, though weaker export momentum and more ‌subdued hiring tempered the upbeat picture.

• HSBC’s flash India Composite Purchasing Managers’ Index (PMI) rose to 56.5 from August’s 54.3, its ​highest since June and back above its long-run ​average. It exceeded the Reuters poll median forecast ⁠of 54.4. Readings above 50 indicate expansion.
• But the ​rebound did not reverse the quarter’s broader slowdown. Based ​on September’s preliminary reading, the composite index averaged 55.1 this quarter, down from 58.2 in April-June, suggesting softer growth in Asia’s ​third-largest economy after a forecast-beating 7.8% expansion last quarter.
• The ​manufacturing PMI climbed to 55.7 from 52.8, its highest in seven ‌months, ⁠as output and new orders grew faster. Goods producers also resumed hiring after a marginal reduction in August.
• The services index rose to 55.8 from 54.1. However, ​new exports increased ​at the ⁠slowest pace in 33 months, offsetting a modest pickup in manufacturing exports and dragging overall ​export growth lower. Hiring in the services sector ​also lost ⁠momentum.
• Overall input-cost inflation eased to its lowest since January, driven by services, offering businesses some relief. Yet selling-price ⁠inflation ​was broadly unchanged, suggesting consumers saw ​scant relief from rising prices.
• Business confidence about the coming year rose to ​a four-month high.

Reporting by Anant Chandak Editing by Shri Navaratnam