Indian private sector companies start 2025 with slowdown in growth: HSBC Flash PMI
The latest HSBC ‘flash’ PMI data report, compiled by S&P Global, has showed that Indian private sector companies started 2025 with a slowdown in growth, amid slower growth in new business intakes and aggregate output. A stronger expansion in the manufacturing industry was more-than-offset by a loss of growth momentum in the service economy. Besides, prices charged for goods and services rose at a faster rate than in December as cost pressures intensified.
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 - fell from a final reading of 59.2 in December to 57.9 in January, indicating the weakest rate of expansion for 14 months. Nevertheless, the headline figure was comfortably above its long-run average of 54.7.
However, the HSBC Flash India Manufacturing PMI - a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases - increased from 56.4 in December to 58.0 in January, highlighting the best improvement in the health of the sector since July 2024.
The report further noted that business confidence improved from December, reflecting more buoyant forecasts among manufacturing companies who were at their most optimistic since May 2024. But, the overall level of positive sentiment at service providers slipped to a three-month low owing to concerns around competition.
