Slower Exports & Sluggish Business Activity Drags Growth

New Delhi, Oct 6 (KNN) India’s business activity growth moderated in September, though it continued to expand, supported by solid domestic demand.

The HSBC India Services PMI Business Activity Index registered 60.9 — still well above the 50.0 threshold separating expansion from contraction — but down from August’s 62.9, signaling a slight loss of momentum.

While services firms continued to see increases in new orders, export demand softened. Companies cited competition from lower-priced service providers abroad as a key factor weakening export growth.

Input costs rose further in September, but at a more restrained pace, easing pressure on selling prices.

Sentiment for the coming year improved further — optimism levels reached a six‑month high, reflecting firms’ belief in sustained output growth ahead.

On a broader scale, the HSBC India Composite PMI Output Index (combining services and manufacturing) slipped from 63.2 in August to 61.0 in September, marking the softest composite expansion in three months.

Across both sectors, new orders, overall output, and employment trends continued upward, though at a more moderate pace than earlier in the year.

In summary, September saw India’s private sector maintain healthy expansion, but with clear signs of cooling. Continued domestic demand supported growth, while softer export momentum and rising costs suggest caution ahead.

(KNN Bureau)