Indian Economy Expands Again in September

But signs of slowing momentum begin to emerge


 
In September Indian Sales Managers continued to report growth across the economy. All Indexes remained above the 50 "no growth" threshold, confirming ongoing expansion. However, most measures slipped back from recent highs, pointing to a cooling pace of activity.

The Market Growth Index, while still firmly in positive territory at 53.8, eased to a five-month low. Sales Growth also edged down to 52.4, its weakest reading in three months, suggesting that demand pressures are beginning to moderate.

India Sales Managers Sales Growth Index: September 2025
Diffusion Indexes: 50 = ‘no growth’
Indian Economy Expands Again in September


Business Confidence followed a similar pattern, dipping to 53.1, its lowest level in three months. While still above 50, this retreat signals a more cautious mood among sales managers about the near-term outlook.

Price pressures, which had been a source of concern over the summer, also eased. The Prices Charged Index fell to 54.2, a six-month low, relieving some fears of overheating. Meanwhile, the Staffing Levels Index inched up to 50.3, a two-month high, indicating a slight improvement in labour demand but still only modest pressure on human resources.

Overall, the latest data show that while the Indian economy continues to grow, the strong momentum seen earlier in the year has started to soften.


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