India’s Private Sector Growth Cools Slightly in September: PMI Data Shows Momentum But Softening Demand

India’s September PMI (Purchasing Managers’ Index) data offers a nuanced picture: while the country’s private sector continued to expand, growth moderated somewhat compared to August’s multi-year high. The HSBC/S&P Global flash composite PMI fell from 63.2 in August to 61.9 in September, signaling robust expansion but with emerging soft spots. Both the manufacturing and services sectors showed slower growth; manufacturing slipped to 58.5, services to 61.6. Key constraints cited include weakening demand especially from exports and international orders, increasing competitive pressures among firms, and rising costs of input materials. Despite this, business sentiment improved to a seven-month high, partly driven by hopes that recent tax reforms (like GST cuts) will buoy domestic demand during the upcoming festive season. Employment growth slowed, suggesting firms are cautious about staffing until demand strengthens. For the IT and tech services sectors, the easing of international demand and currency fluctuations could pose challenges ahead.