India’s flash business activity index rises to 56.7, but hiring barely grows
Reuters reported that India’s preliminary composite PMI rose to 56.7 in October as services improved, while employment growth nearly stalled.
The flash HSBC India Composite Purchasing Managers’ Index rose to 56.7 in October from September’s 55.9, according to a survey reported by Reuters. The reading signalled stronger private-sector activity, but employment was nearly unchanged.
What the October survey reported
Reuters reported on 23 October that the preliminary composite PMI increased to 56.7 from 55.9 in September. The services index rose to 56.2 from 55.2, while the manufacturing index eased to 54.9 from 55.1. A reading above 50 signals expansion in the survey’s activity measure; it is not a percentage growth rate.
The report attributed the faster expansion mainly to stronger orders and services activity. Export orders improved, input-cost inflation eased, and business confidence recovered, although it remained below the average for the year.
Why the hiring detail matters
The same survey indicated that employment was almost unchanged, ending a nine-month hiring streak. Firms reportedly handled workloads with existing staff. That means a stronger activity reading should not be translated into a claim that job creation accelerated at the same pace.
PMI is a timely private-sector survey, not the official GDP estimate and not a count of every job in India. The October number was preliminary, so the final survey and later official data may differ.
Editorial note
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Frequently asked questions
Does a PMI of 56.7 mean India’s economy grew 56.7%?
No. PMI is a diffusion index; a reading above 50 indicates expansion in the survey, not a percentage growth rate.