Particle.news
Download on the App Store

India’s Services Growth Slows to Five-Month Low as Manufacturing Accelerates

GST reforms helped rein in input and output price increases.

Overview

  • The services PMI slipped to 58.9 in October from 60.9 in September, the slowest expansion since May yet still comfortably above the 50 expansion threshold and the long-run average of 54.3.
  • HSBC cited heavy rains in parts of the country and rising competitive pressures as the main drags on service activity.
  • Manufacturing strengthened to 59.2 from 57.7, lifting factory momentum even as overall growth eased.
  • The composite PMI, combining manufacturing and services, eased to 60.4 from 61.0, marking the softest increase since May.
  • External demand for services rose at the slowest pace since March, firms added staff only slightly, and business confidence remained positive but dipped to a three-month low.