India`s private sector activity witnesses slowest pace of expansion in July: Flash PMI data
India’s private sector activity in July witnessed the slowest pace of expansion since March 2022, amid intensified inflationary pressures. New orders rose further, but the pace of expansion receded to the weakest in close to four-and-a-half years and was moderate by historical standards. The moderation in growth of both new orders and output was centred on India's service economy, where rates of expansion retreated substantially from June to the weakest in 53 months. In contrast, the manufacturing industry recovered some of the momentum it had lost previously.
According to the data report, the HSBC Flash India Manufacturing PMI eased from final reading of 54.2 in June to 53.9 in July, while HSBC Flash India Services PMI Business Activity Index also fell to 53.1 in July from June’s final reading of 57.4. Besides, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - was down from a final reading of 57.1 in June to 54.3 in July.
The report further noted that input costs across the private sector increased at a quicker rate than in June, albeit one that remained below its long-run average. Rates of inflation accelerated in the manufacturing and service sectors. Private sector employment in India continued to rise at the start of the second fiscal quarter, marking a seven-month sequence of growth. Despite strengthening from June, the pace of job creation was modest. Service providers outperformed manufacturers on this front.
