Stories
India's Business Activity Hits Four-Month High in September Driven by Manufacturing Surge
- •India's business activity reached a four-month high in September, with the HSBC Flash India Composite Purchasing Managers' Index (PMI) rising to 56.5 from 54.3 in August.
- •Manufacturing led the upturn, with the flash Manufacturing PMI climbing to 55.7 in September, its strongest reading in seven months, driven by increased demand for various products.
- •New business orders accelerated, supporting further hiring across companies, although export growth slowed significantly to its weakest pace in nearly three years.
- •Inflationary pressures moderated overall, with input cost inflation falling to its lowest since January, despite a pick-up in costs for manufacturers.
- •Business sentiment strengthened, reaching a four-month high, as companies built inventories due to renewed tensions in the Middle East.
Key Questions Answered
India's business activity rose to a four-month high in September 2026, with the HSBC Flash India Composite PMI climbing to 56.5 from 54.3 in August. This expansion was driven by a sharp recovery in manufacturing, stronger new orders, and accelerated output growth across both manufacturing and services sectors.
The flash Manufacturing PMI climbed to 55.7 in September from 52.8 in August, reaching a seven-month high due to stronger demand for goods like electronics, food, and pharmaceuticals. Meanwhile, export growth lost momentum, with the pace of new export orders slowing to its weakest level in nearly three years.
Overall private-sector input cost inflation fell to its lowest level since January, as lower cost pressures at services companies offset a pick-up among manufacturers. Concurrently, business sentiment strengthened, with optimism regarding output over the coming year reaching a four-month high across both manufacturing and services.
