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India’s Services Growth Cools as Manufacturing Surges in October PMI

Competitive pressures alongside heavy rains constrained service providers.

Overview

  • The HSBC India Services PMI slipped to 58.9 in October, a five‑month low that still signaled solid expansion above both 50 and its long‑run average.
  • Manufacturing activity rose to 59.2, with firms citing demand tied to recent GST cuts and festive‑season buying.
  • India’s composite PMI eased to 60.4 from 61.0 in September, reflecting a services‑led moderation in overall output growth.
  • Surveyed companies reported softer price pressures, with input costs at a 14‑month low and output charges at a seven‑month low, crediting GST changes.
  • Businesses remained optimistic about the next 12 months, added staff to handle new work, and saw exports grow at a slower yet solid pace.