India Private Sector Growth Slowest In 5 Months

(RTTNews) - India's private sector activity expanded at the weakest pace in five months in October amid a slowdown in the service economy, flash survey results from S&P Global showed on Friday.

The HSBC flash composite output index dropped to 59.9 in October from 61.0 in September. However, a score above 50 indicates expansion in the sector.

New orders received by the Indian private sector grew at the slowest pace in five months due to a loss of growth momentum in the service economy as manufacturers logged a slightly quicker rise since September.

The services Purchasing Managers' Index also declined to 58.8 in October from 60.9 in the previous month.

Meanwhile, the Manufacturing PMI increased to a 2-month high of 58.4 in October from 57.7 in September, indicating a substantial improvement in manufacturing conditions.

The survey showed the private sector employment rose marginally in October, with the rate of job creation being the joint-softest in a year and a half. Firms remained cautious about adding workforce numbers amid sufficient capacity for current requirements.

On the price front, input price inflation eased to a 4-month low in October, while selling prices showed a faster upturn due to greater operational costs, the usage of premium inputs, and greater outlays on labor and transportation.

Looking ahead, Indian companies remained confident about expected activity over the next twelve months as they hope to benefit from the GST rate cut, marketing efforts, new product releases, and tech investment.