India's private sector PMI jumps to 56.5 in September, driven by manufacturing

September saw the HSBC Flash India Composite PMI reach 56.5, up from 54.3 the month before, marking the fastest private-sector expansion since June. Manufacturing performance improved sharply, with its PMI rising to 55.7 and the output index to 58.2, the strongest in seven months, while services activity also strengthened to a PMI of 55.8. Companies reported faster growth in new domestic orders, especially for aluminium products, electronic items, food, pharmaceuticals and software solutions.

Export orders continued to rise but at the slowest pace in nearly three years. Hiring increased across both sectors, and input-cost inflation fell to the lowest level since January, offsetting a modest rise in factory-gate prices. Business confidence hit a four-month high as firms built inventory buffers amid Middle-East tensions.