India’s private sector growth remained strong in June but slowed compared to May, according to HSBC Flash PMI data. The HSBC Flash India Composite PMI Output Index fell to 57.4 in June from 59.3 in May, marking the slowest expansion since March.
The services sector also saw slower growth. The HSBC Flash Services PMI Business Activity Index declined to 57.3 in June from 59.8 in May. Manufacturing output growth eased as well, with the Manufacturing Output Index slipping to 57.4 from 58.0.
India’s headline Manufacturing PMI fell to 54.5 in June from 55.0 in May, a three-month low. Demand growth softened across both manufacturing and services, limiting the pace of business activity expansion.
New orders continued to increase, but at a slower pace than in previous months. Export demand remained healthy, especially in services, although overall international sales growth slowed to its weakest level in 21 months.
Job creation also lost momentum. Employment continued to rise in June but at the slowest pace in the current six-month growth period, as companies became more cautious about hiring.
HSBC Chief India Economist Pranjul Bhandari said private sector activity eased slightly in June as manufacturing inventory building slowed after several strong months. She noted that export orders remained resilient and the order-to-inventory ratio improved, indicating manufacturing activity could remain supported in the coming months. Input cost inflation also eased, with overall cost pressures rising at the slowest pace in five months.
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