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New Delhi, Oct 25 (KNN) India’s private sector growth eased to a five-month low in October, mainly due to a slowdown in services, even as manufacturing output showed resilience. According to the HSBC Flash India Composite Output Index, compiled by S&P Global, overall business activity slipped to 59.9 in October from 61.0 in September. While readings above 50 indicate expansion, the dip points to moderation in growth momentum. The manufacturing sector, however, saw an uptick, with the Flash Manufacturing PMI rising to 58.4 from 57.7. The services sector lagged behind, with the Flash Services PMI falling to 58.8 from 60.9 in September. Economists attributed the improvement in manufacturing to lower input costs and steady demand, supported by recent policy measures. On the other hand, services firms reported a softer rise in new business, citing slower client inflows and mild competition pressures. Export orders also grew at a slower rate amid weak global demand and tariff-related uncertainties. Employment growth eased to its slowest pace since April 2024, reflecting cautious hiring in both sectors. Despite the moderation, the survey suggests India’s economy continues to expand at a healthy pace. Companies remain optimistic about future output, driven by expectations of new projects, tax reforms, and festive demand in the coming months. Overall, October’s data highlights a mixed picture — while manufacturing remains buoyant, services activity has lost some momentum. The challenge ahead lies in sustaining growth across sectors as global and domestic headwinds persist. (KNN Bureau)
