India business activity rebounds in September to 3-month high, PMI shows

BENGALURU, Sept 23 (Reuters) - ‌India's business growth ​accelerated ​in September on stronger demand in both manufacturing and services, a preliminary survey showed, though ‌weaker export momentum and more subdued hiring tempered ⁠the upbeat picture.

• HSBC's flash India Composite Purchasing Managers' Index (PMI) rose ‌to 56.5 from August's ‌54.3, its highest since June and back above its long-run average. It exceeded the Reuters poll median forecast ​of 54.4. Readings above 50 indicate expansion.

• But the rebound did not reverse the quarter's broader slowdown. ⁠Based on September's preliminary reading, the composite index averaged 55.1 this quarter, down ​from 58.2 in April-June, suggesting softer growth in Asia's third-largest economy after a forecast-beating 7.8% expansion ​last quarter.

• The manufacturing PMI ‌climbed to 55.7 from 52.8, its highest in seven months, as output and new orders ⁠grew faster. Goods producers also resumed hiring after a marginal reduction in August.

• The services index rose to 55.8 from ⁠54.1. However, new exports increased at the slowest pace in 33 ​months, offsetting a modest pickup in manufacturing exports and dragging overall export growth lower. Hiring in the services sector also lost ‌momentum.

• Overall input-cost inflation eased to its lowest since January, driven by services, offering businesses ‌some relief. Yet selling-price inflation was broadly unchanged, suggesting ⁠consumers saw scant relief ‌from rising prices.

• ​Business confidence about the coming year rose to a four-month high.

(Reporting by Anant ChandakEditing by Shri ‌Navaratnam)

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