India’s HSBC Manufacturing PMI edged down to 54.7 in October 2026 from 55.1 in September, slightly below the preliminary estimate of 54.9. Despite the decline, the index remained comfortably above the neutral 50.0 mark and above its long-run average, signalling a continued expansion in manufacturing activity.
New orders rose sharply again, though the rate of growth eased from September’s seven-month high. Output also increased at a solid pace, driven primarily by intermediate goods producers. New export orders registered their fastest growth in six months, supported by stronger demand across a wide range of overseas markets.
Manufacturers continued to expand hiring and build up inventories. Stocks of finished goods rose at a record pace, while inventories of inputs climbed to an eight-month high. However, employment growth remained modest overall, and business confidence weakened, staying below its long-run average.
On the price front, input cost inflation slowed to its lowest level since February, and output charge inflation (selling prices) decelerated to its weakest rate in nearly four years.
