Mumbai, Sept. 23 -- The combined performance of India's manufacturing and service sectors strengthened during September, although the majority of the HSBC Flash PMI indices retreated from August's recent highs to signal a modest slowdown.

A softer expansion in new business intakes accompanied slower increases in private sector output and employment, with international sales also rising at a weaker pace. Prices trends were more benign as cooler input cost inflation allowed for selling charges to be lifted to a lesser degree. Nevertheless, business confidence strengthened at the end of the second fiscal quarter.

At 61.9 in September, the HSBC Flash India Composite Output Index came in below August's multi-year high of 63.2 but still indic...