Expansion accelerated in both the manufacturing and services sectors, underpinned by a surge in export orders representing a six-month high. Nevertheless, job creation moderated to a negligible extent, as services employment remained static and manufacturing hiring saw a slight uptick. Work backlogs contracted at the steepest rate since August 2021.

The HSBC Flash India Manufacturing PMI moderated to 54.9 from 55.1 in September, accompanied by a deceleration in purchasing activity growth. Inventories expanded amid heightened demand and reduced supplier delivery durations.

Easing inflationary pressures were underscored by input cost inflation attaining its lowest level in almost a year and output price inflation decelerating to its slowest pace since March 2025. Business confidence advanced to its highest level since May.