India business activity rises to highest since June as manufacturing strengthens

India’s business activity accelerated in September, with the flash composite Purchasing Managers’ Index rising to 56.5 from 54.3 in August. The reading was the highest since June and moved back above its long-run average. A PMI reading above 50 indicates growth in activity. Manufacturing showed a particularly strong improvement, with the flash manufacturing PMI increasing to 55.7 from 52.8 and reaching a seven-month high. Services activity also expanded, with its index rising to 55.8 from 54.1. Stronger domestic demand supported both sectors, although growth in export orders weakened and services hiring lost momentum. Overall input-cost inflation eased to its lowest level since January. The September rebound did not fully reverse the broader quarterly slowdown, with the composite index averaging 55.1 in the quarter compared with 58.2 in April-June.