23.09.202505:04:13UTC+00India Composite PMI Falls from Record Peak

The HSBC India Composite PMI declined to 61.9 in September 2025, down from the record high of 63.2 recorded in August, according to preliminary data. Despite this drop, the figure remained the second highest in over two years, with factory output growth surpassing service sector growth, although both sectors experienced a deceleration. New orders grew at a slower pace but continued to exceed the long-term trend, while international demand rose at its slowest rate in six months, highlighting varying trends across sectors. Employment experienced moderate growth, and the rise in outstanding business was minimal. On the cost side, input expenses increased at a reduced rate, and selling price inflation decreased, as an increase in factory gate prices was counterbalanced by a deceleration in services inflation. Looking forward, business confidence reached a seven-month high, boosted by factors such as capacity expansion, competitive pricing, steady demand, improved efficiency, and robust marketing strategies. Furthermore, certain companies anticipated gaining from the recent reduction in the goods and services tax rate.