India private sector PMI rises in September on strong manufacturing

India's private sector showed strong economic momentum in September, according to HSBC Flash PMI data. The composite PMI rose to 56.5, up from 54.3 in August, marking the highest level since June.

The manufacturing sector saw significant acceleration, with the HSBC Manufacturing PMI climbing to 55.7 from 52.8 in the previous month. This growth was driven by a rapid increase in production and new orders, supported by both domestic demand and rising export orders from regions including the US, Europe, Brazil, and the UAE.

In the services sector, the HSBC Services PMI increased to 55.8 from 54.1. While both sectors experienced growth in new orders and employment, manufacturing showed particularly robust sales.

Despite the expansion, companies reported rising input costs for items such as electricity, food, fuel, and metals. Additionally, finished goods inventories reached their highest levels in approximately 11.5 years as firms increased purchasing activities to build buffers against potential geopolitical uncertainties.