India's private-sector economy continued to showcase robust growth in October, driven by new work orders and significant hiring. The flash India composite output purchasing managers index (PMI) rose to 58.6 in October, an increase from 58.3 in September, further surpassing the crucial 50-marker that indicates growth rather than contraction.
This composite index effectively reflects the performance of both India's manufacturing and services sectors, maintaining a presence in growth territory for the 39th consecutive month. In October, the flash India manufacturing PMI saw a rise to 57.4 from the previous month's 56.5, while the flash India services PMI also increased to 57.9 from 57.7.
The industrial sector in India experienced an expansion in new orders and new export orders at accelerated rates, which signals a positive outlook for industrial production as the year approaches its end. Manufacturers in India made efforts to restock in October, yet the fulfillment of sales from warehouses resulted in a slight decrease in stocks of finished goods.
In the service sector, payroll growth was remarkably sharp, marking the fastest pace of hiring observed in 18 and a half years. Both manufacturing and service-sector managers have reported an upturn in input costs; however, these costs remain below the long-run averages. At a composite level, input cost inflation picked up to its strongest rate in three months, amidst slightly quicker increments at both goods producers and service providers.
Despite this increase, the general inflation rate for costs remained beneath the survey average. The Flash India PMI report was meticulously compiled by analyzing survey responses from 400 manufacturers and an equal number of service providers between October 9 and October 21, offering a comprehensive view of the current economic landscape in India..