<p>Bengaluru: The country's dominant services sector saw its expansion falter to a five-month low in October, as competitive pressures and heavy rains dampened the robust pace of growth seen in recent months, a survey showed on Thursday.</p><p>While new business - a key gauge of demand - continued to rise sharply, the slowdown highlights emerging headwinds for Asia's third-largest economy, which is expected to grow 6.7 per cent this fiscal year from 6.5 per cent last year, even as inflationary pressures showed marked signs of easing.</p><p>HSBC's India Services Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 58.9 last month from 60.9 in September. The final reading, representing the slowest expansion since May, largely matched the preliminary estimate of 58.8.</p>.India manufacturing growth picks up in October as domestic demand strengthens, PMI shows.<p>The index remained comfortably above the 50-mark separating growth from contraction for the 51st consecutive month and stayed above its long-run average, indicating underlying conditions remain robust despite the deceleration.</p><p>A slowdown in demand drove the moderation. The new business sub-index, though substantial, slipped to a five-month low. Survey participants attributed this restricted growth to heightened competition, as well as floods and landslides in parts of the country.</p><p>International demand also softened with new export business expanding at the weakest pace in seven months.</p><p>That meant business optimism took a knock, with confidence about the year ahead, though still strong, slipping to a three-month low. Meanwhile, firms' appetite to hire remained muted, with job creation running at the joint-softest pace in 18 months.</p><p>However, input costs rose at the slowest rate since August 2024, with firms noting the reduction in a goods and services tax helped curb price pressures. As a result, companies passed this on to customers, with prices charged for services increasing at the most sluggish pace in seven months.</p><p>That meant the country's retail inflation could ease further after already cooling to an over-eight-year low of 1.54 per cent in September, giving room for the Reserve Bank of India to cut interest rates next month.</p><p>The HSBC Composite PMI index, which combines both services and manufacturing, eased to a five-month low of 60.4 in October from 61.0 in September. The survey highlighted the slowdown was primarily led by services as manufacturers registered a faster expansion in both output and new orders.</p>
<p>Bengaluru: The country's dominant services sector saw its expansion falter to a five-month low in October, as competitive pressures and heavy rains dampened the robust pace of growth seen in recent months, a survey showed on Thursday.</p><p>While new business - a key gauge of demand - continued to rise sharply, the slowdown highlights emerging headwinds for Asia's third-largest economy, which is expected to grow 6.7 per cent this fiscal year from 6.5 per cent last year, even as inflationary pressures showed marked signs of easing.</p><p>HSBC's India Services Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 58.9 last month from 60.9 in September. The final reading, representing the slowest expansion since May, largely matched the preliminary estimate of 58.8.</p>.India manufacturing growth picks up in October as domestic demand strengthens, PMI shows.<p>The index remained comfortably above the 50-mark separating growth from contraction for the 51st consecutive month and stayed above its long-run average, indicating underlying conditions remain robust despite the deceleration.</p><p>A slowdown in demand drove the moderation. The new business sub-index, though substantial, slipped to a five-month low. Survey participants attributed this restricted growth to heightened competition, as well as floods and landslides in parts of the country.</p><p>International demand also softened with new export business expanding at the weakest pace in seven months.</p><p>That meant business optimism took a knock, with confidence about the year ahead, though still strong, slipping to a three-month low. Meanwhile, firms' appetite to hire remained muted, with job creation running at the joint-softest pace in 18 months.</p><p>However, input costs rose at the slowest rate since August 2024, with firms noting the reduction in a goods and services tax helped curb price pressures. As a result, companies passed this on to customers, with prices charged for services increasing at the most sluggish pace in seven months.</p><p>That meant the country's retail inflation could ease further after already cooling to an over-eight-year low of 1.54 per cent in September, giving room for the Reserve Bank of India to cut interest rates next month.</p><p>The HSBC Composite PMI index, which combines both services and manufacturing, eased to a five-month low of 60.4 in October from 61.0 in September. The survey highlighted the slowdown was primarily led by services as manufacturers registered a faster expansion in both output and new orders.</p>