India’s October business growth hits 4-month high; hiring stalls, PMI shows
BusinessLine 2d ago·23 Oct 2026, 5:26 am
The latest Purchasing Managers' Index (PMI) for October shows India's private‑sector activity expanding at its fastest pace in four months. The composite index rose, driven mainly by a jump in the services PMI to 56.2 from 55.2, signalling strong demand in sectors such as IT, finance and retail.
For investors, a higher PMI usually translates into better corporate earnings because firms are producing more and seeing higher sales. However, the survey also noted that hiring growth stalled, suggesting firms are cautious about adding staff despite the upbeat output, which could temper wage‑driven inflation pressures.
Market participants will be watching the next month’s manufacturing PMI, the upcoming employment reports and any policy signals from the Reserve Bank of India. Continued strength in services combined with a pick‑up in hiring would reinforce the growth narrative, while a persistent slowdown in job creation could raise concerns about the sustainability of the current momentum.
Excerpt from BusinessLine
India's business activity expanded at its fastest pace in four months in October as stronger orders drove a services-led pickup, but hiring almost stalled as companies met rising workloads with existing staff, a preliminary survey showed. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by…Read the original at BusinessLine
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