New Delhi, Oct. 25 -- India's private sector growth lost some momentum in October, as a slowdown in services tempered overall activity, according to HSBC's Flash India Purchasing Managers' Index (PMI) survey released on Friday. The survey showed the weakest rise in new orders and output since May 2025, with international sales also expanding at a slower pace. The HSBC Flash India Composite PMI Output Index, compiled by S&P, decreased to 59.9 in October from 61 in September, indicating a slight moderation in overall private sector growth. However, the reading still remained above 50, a mark that separates expansion and contraction. The services business activity index eased to 58.8 in October from 60.9 in September, indicating a softer expansion in the services economy. The HSBC Flash India Manufacturing PMI Output Index rose to 62.4 from 61.1, while the HSBC Flash India Manufacturing PMI inched up to 58.4 from 57.7, signalling steady improvement in factory activity. "Meanwhile, the rate of job creation was the joint-softest in a year and a half. Price trends were mixed, with input costs increasing at the weakest pace since June and charge inflation quickening since September," the survey said. Businesses remained optimistic regarding growth prospects, though sentiment faded at the start of the third quarter, it added. The final PMI data for October will be released early next month. "The HSBC flash manufacturing PMI picked up a tad, likely on the back of GST rate cuts, which are buoying domestic demand and curbing cost pressures," said Pranjul Bhandari, chief India Economist at HSBC. "New orders and output, both, are above the average January-July levels. However, the drag from US tariffs continues to show up in new export orders and future optimism, which remain below the Jan-Jul levels," she added. The flash PMI data is based on responses from around 400 manufacturers and 400 service providers. According to the survey, while new orders placed with private sector companies in India expanded sharply in October, the rate of growth slowed to the weakest in five months. The softer increase in sales stemmed from a loss of growth momentum in the service economy as goods producers registered a slightly quicker rise than in September. To be sure, the renewed US tariffs are beginning to weigh on India's manufacturing and services sectors, disrupting supply chains and denting export sentiment. Higher duties, raised by as much as 50% on a wide range of Indian goods, along with visa restrictions, are tightening conditions for exporters and service providers alike. Incidentally, the US remains India's largest export market. The survey showed that the growth of Indian goods in overseas markets slowed to its weakest pace since March, reflecting a softer uptick in manufacturing activity in October. "October data showed a moderate expansion in private sector employment across India, with the rate of growth matching that seen in September and therefore being the joint-slowest since April 2024," the survey said. Anecdotal evidence indicated that several companies left payroll numbers unchanged amid sufficient capacity for current requirements, it added. The survey noted that Indian firms remain optimistic, expecting to gain from the GST (goods and services tax) rate cut, intensified marketing efforts, new product launches, and increased investments in technology. "Indian companies remained strongly confident regarding the year-ahead outlook for output, yet the respective index fell since September," it added....