India Composite PMI Revised Lower

The HSBC India Composite PMI rose to 59.5 in January 2026 from December’s 11-month low of 57.8, flash data showed. The reading was well above the long-run average, driven by stronger growth in both manufacturing and services. New orders accelerated amid firmer demand and aggressive marketing campaigns, while foreign demand rose the most in four months, led by Asia, Australia, Europe, Latin America, and the Middle East. Hiring resumed after December’s stagnation, with job creation modest but broadly in line with historical trends. Outstanding business rose for a second month, though accumulation was marginal. On prices, input cost inflation hit a four-month high yet stayed modest by historical standards, while output price inflation was the highest in three months. Lastly, business sentiment improved to a three-month high, supported by efficiency gains, stronger demand, allocated marketing budgets, and favorable exchange rate conditions, though it remained below the series average.

The HSBC India Composite PMI slipped to 57.8 in December 2025, below the flash estimate of 58.9 and down from 59.7 in November. The latest reading marked the lowest since the beginning of the year, reflecting slower momentum across both manufacturing and services sectors. New orders rose at the slowest pace in 25 months, with momentum easing for both goods producers and service firms. At the same time, job creation stalled at the composite level, reflecting weaker hiring among manufacturers and fractional job shedding in services. On the price front, input costs and output charges continued to post modest increases, with inflation rates broadly aligned and remaining below their long-run averages. Looking ahead, business sentiment stayed optimistic, yet confidence slipped to a 41-month low, underscoring caution despite the overall expansionary backdrop.

The HSBC India Composite PMI fell to 58.9 in December 2025 from a final 59.7 in the prior month, flash data showed. It was the lowest reading since February, due to softer growth across manufacturing and service sectors. Total new orders eased, though foreign sales posted their strongest growth in three months. At the same time, employment levels were broadly unchanged, with workforce gains the weakest since February 2024, yet firms managed workloads and recorded a third straight month of stable backlogs. On prices, input costs rose modestly, only slightly above a near 5-1/2-year low, while inflation remained below the series average. Output charges also increased modestly, at the second-slowest pace in nine months, leaving overall price pressures weaker than the 2025 average. Looking ahead, confidence remained upbeat, though optimism weakened for a third consecutive month to its lowest since July 2022.