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Informist, Tuesday, Sept. 23, 2025

 

--India Sept flash composite PMI output index 61.9 vs 63.2 Aug final 

--India Sept flash services PMI activity index 61.6 vs 62.9 Aug final 

--India Sept flash manufacturing PMI 58.5 vs 59.3 Aug final 

 

NEW DELHI – India's private sector activity expanded at a slower pace in September compared with the previous month with the HSBC Flash Composite Purchasing Managers' Index falling to 61.9 from an over 17-year high of 63.2 in August, S&P Global said Tuesday.

 

Both manufacturing and services sector activity in September moderated from record highs in August but factory production growth outpaced services activity, S&P said. The flash manufacturing PMI eased to 58.5 in September from 59.3 a month ago and the flash services PMI moderated to 61.6 from 62.9 in August. 

 

New business intakes, private sector output, employment, and exports all rose at a weaker pace compared with the previous month, S&P Global, which compiles the PMI, said. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"The imposition of the 50% tariff rate by the US on India likely resulted in a slower rise in new export orders over Aug-Sep," Pranjul Bhandari, chief India economist at HSBC, said in the release. "This comes on the back of strong frontloading of exports to the US since early-2025."

 

Several companies surveyed by S&P Global said demand conditions remained favourable, but others pointed out that competitive pressures hurt new orders in September. New domestic orders rose for the last two months, S&P Global said, likely on the back of announcements of lower GST rates. 

 

International sales trends diverged across the manufacturing and services sectors. In the services sector, export growth slowed to the joint-weakest since March, while it picked up at manufacturing firms, S&P Global said. "Subsequently, aggregate new export order volumes increased at the softest pace in six months."

 

The rate of job growth moderated from August across both the manufacturing and service sectors. The vast majority of survey participants reported having sufficient labour for current requirements, S&P Global said. 

 

Prices pressures were more benign in September as cooler input cost inflation led to a slower increase in selling charges. Manufacturers reported a quicker increase in selling prices than service providers. "Factory gate charges rose to the greatest extent in over 12-and-a-half years, but a substantial slowdown in the service economy pulled the aggregate rate of inflation lower," S&P Global said.  End

 

Reported by Shubham Rana

Edited by Vandana Hingorani

 

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