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India’s Services Growth Eases to 5-Month Low as Manufacturing Hits 59.2 in October

GST rationalisation eased price pressures, supporting strong factory output.

Overview

  • HSBC’s composite PMI slipped to 60.4 from 61.0 in September, reflecting slower services expansion.
  • Services PMI fell to 58.9, with heavy rains and competitive pressures weighing on activity despite expansion well above 50.
  • Manufacturing PMI rose to 59.2, near a 17-year high, driven by GST cuts, stronger demand, productivity gains and technology investment.
  • Surveyed firms reported input costs rising at the slowest pace in 14 months and output charges at the slowest in seven months, citing GST reforms.
  • Companies remained upbeat on the 12‑month outlook and added staff, though growth in new orders and international services demand was the weakest in several months.