India's Economy Surges to 3-Month High Despite Global Turmoil

India's private sector economy demonstrated significant momentum in September, reaching a three-month high in overall activity. This growth was primarily propelled by the manufacturing sector, which achieved its strongest performance in seven months.

The services sector also contributed to the positive trend, with both sectors experiencing increased output and a faster rise in aggregate new orders. This surge in demand prompted a solid expansion in job creation across both manufacturing and services.

Despite external challenges, including renewed Middle East tensions and rising crude oil prices, Indian businesses reported stronger confidence. Input cost inflation fell to its lowest since January, although selling price inflation remained steady.

Companies actively built inventory buffers in anticipation of uncertainties, leading to an 11-and-a-half-year high in stocks of finished goods. Looking ahead, business confidence regarding the year-ahead outlook for output improved, reaching a four-month high.