India`s private sector grows with composite PMI rising to 59.3 in February
India’s private sector activity accelerated in the month of February, with quicker increases in total new orders and international sales. According to the data report, 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 - rose from 58.4 in January to 59.3 in February, indicating the strongest rate of expansion for three months.
Goods producers signalled a stronger rise in total sales than services firms, and one that was the quickest in four months, as the latter saw growth retreat to a 13-month low. Dampening the upturn was competitive pressures and the offer of cheaper services elsewhere. One area where the service economy outperformed was exports, as international orders rose at a substantial pace that was the steepest since August 2025. Conversely, manufacturers observed the slowest increase in external sales for 16 months. At the composite level, February's expansion was the strongest since last September.
With backlogs of work rising in a broad-based fashion, employment increased in the manufacturing and service sectors. Rates of expansion were modest, but quickened in each case. At the composite level, the pace of job creation strengthened to a three-month high. In addition to hiring additional staff, goods producers also scaled up purchasing volumes. Input buying growth climbed to a fou--month high in February. The strength seen across the goods-producing economy was evidenced by the HSBC Flash India Manufacturing PMI rising from 55.4 in January to a four-month high of 57.5 in February.
