Robust Manufacturing and Services Drive India's Private Sector PMI Past 56

The September HSBC Flash PMI survey shows India’s private sector pushing the composite index to 56.5, a clear sign of strong expansion. Both manufacturing and services segments posted solid growth, lifting the overall PMI from 54.3 in August.

New order volumes climbed sharply, and firms in both sectors added staff, reflecting heightened confidence and reduced inflationary pressure. Activity levels have now reached their highest point since June and sit above the long‑run average.

HSBC’s chief India economist explained that a firm manufacturing base, paired with a rapid increase in domestic orders, propelled the surge. Firms are also creating buffers to cope with renewed Middle‑East tensions.

Input‑side activity accelerated, pushing the inventory of finished goods to an eleven‑year high. Price pressures on manufacturers grew, pointing to efforts to preserve margins as output prices rose.

While demand surged across both segments, the manufacturing sector showed a clearer uptick. Sales growth in manufacturing hit a seven‑month peak, outpacing the services sector.

Service companies attributed order growth to aggressive marketing, noting higher demand for property, transport, and travel‑related services. Manufacturers reported stronger demand for aluminium products, electronics, food‑beverage items, pharmaceuticals, and new product models.

Overall employment rose as firms expanded staffing to match higher output and order flow. Hiring rates were similar in both manufacturing and services, indicating balanced growth across the private sector.