FX.co ★ India Composite PMI Drops to 5-Month Low

The HSBC India Composite PMI declined to 59.9 in October 2025, down from a final reading of 61.0 in the preceding month, according to preliminary data. This marks the lowest level since May, primarily influenced by a slowdown in new order growth to a five-month low, while foreign demand increased at its most sluggish pace since March. Employment growth also decelerated, reaching its slowest rate of expansion in 18 months. Simultaneously, backlog levels remained steady, with a minor decline in services counterbalancing a modest increase in manufacturing, halting a 45-month trend of backlog accumulation. On the pricing front, input cost inflation eased to its lowest rate since June, although output charge inflation saw a slight uptick. Looking forward, business confidence continues to be positive; however, the sentiment index experienced a downturn due to concerns about competition, challenging market conditions, and softer demand.