FX.co ★ India Private Sector Growth at 4-Month High

India’s HSBC Composite PMI rose to 56.7 in October 2026 from a final reading of 55.9 in September, according to flash estimates. This marked the fastest expansion in private-sector activity since June, driven by stronger growth in services while manufacturing output remained solid. New orders accelerated, and export sales recorded their largest gain in six months, supported by firm demand from the U.S., the UK, the Middle East, and Bangladesh. However, employment increased at its slowest pace so far this year. Outstanding business declined for the third time in four months, with the rate of depletion matching the 6‑1/2‑year high seen in August 2021 and ranking among the steepest since the global financial crisis. Price pressures continued to ease: input cost inflation slowed for the seventh consecutive month to its lowest level in nearly a year, while output price inflation fell to its weakest since March 2025. Looking ahead, business confidence rose to its highest level since May on expectations of improved market conditions, though it remained below the average recorded so far in 2026.