India’s private-sector activity accelerated in October, led by stronger services demand, but employment was broadly unchanged as firms cleared workloads without expanding payrolls.
India’s private sector expanded at its quickest pace in four months in October, but the improvement in activity did not translate into stronger hiring, according to Reuters, which cited the latest S&P Global survey compiled with HSBC. The flash composite purchasing managers’ index rose to 56.7 from 55.9 in September, beating economists’ expectations of 56.1 and signalling broad growth across manufacturing and services. Readings above 50 indicate expansion, although the latest figure still sat below the year’s average.
The main driver was services, where business activity picked up to 56.2 from 55.2 as new orders strengthened and demand improved at home and abroad. Manufacturing also continued to grow, but more modestly, with its PMI easing to 54.9 from 55.1. Reuters reported that the split suggests the recovery remains uneven, even as firms benefit from a steady flow of work.
What stood out most in the survey was the labour market. Employment across the private sector was broadly unchanged in October, ending nine straight months of job gains. Companies said their existing staff were able to handle the higher workload, which meant fresh recruitment did not keep pace with the rise in orders. The survey also showed that backlogs of unfinished work fell, suggesting firms were clearing pending jobs without adding headcount.
For jobseekers, the message is mixed: demand is strengthening, but businesses are still leaning on efficiency rather than expansion of payrolls. Lower cost pressures also offered some relief, with inflation in input costs easing across both sectors, according to the Reuters summary of the survey. Business confidence improved, though it remained below the average for this year, leaving open the question of how quickly stronger activity will feed through to more hiring.
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