India`s private sector output eases to 58.6 in March: Flash PMI
The HSBC Flash India PMI report has said that India’s private sector output rose at a slower pace in March 2025 as compared to the previous month amid softer increase in services activity, as factory production rose at the quickest pace since July 2024. As has been the case for nearly three-and-a-half years, outstanding business volumes across India's private sector increased during March. However, the rate of accumulation slowed from February and was mild overall. There were softer increases in both the manufacturing and service categories.
The HSBC Flash India 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 marginally to 58.6 in March from February's final reading of 58.8. Despite the marginal dip, the reading remains well above the long-run average of 54.7, reflecting robust expansion across the economy. However, the HSBC Flash India Manufacturing PMI index increased from 56.3 in February to 57.6 in March, signalling a notable improvement in operating conditions that was broadly aligned with the average for the 2024/25 fiscal year. Three of its five main sub-components rose since last month, namely output, new orders and stocks of purchases.
According to the report, order book volumes at Indian private sector companies continued to be supported by international sales. New export order growth eased to a three-month low, but remained marked and above the average since the series started in September 2014. Manufacturing companies registered a faster upturn in new business from abroad than their services counterparts. Private sector businesses in India reported a further increase in their operating expenses, amid greater outlays on copper, electronics, food (especially fruits and vegetables), leather, medical equipment, rubber and vehicle spare parts. Cost pressures were stronger in the service economy, despite a slowdown here and an acceleration at goods producers. The aggregate rate of inflation nevertheless remained below its long-run average.
