India Composite PMI Revised Lower

The HSBC India Composite PMI increased to 59.3 in February 2026 from a final 58.4 in the previous month, flash data showed. It was the highest reading since last November, amid a quicker upturn in factory production, as growth of services activity was broadly similar to that in January. Output and new orders grew the most in three months, helped by local tourism, marketing initiatives, and rising client enquiries. Foreign sales also grew at the quickest rate since last September. Hiring strengthened to a three-month high, while outstanding business rose for a third month, marking the sharpest rise since July 2025, though the overall accumulation was modest. On the price front, input costs climbed at the steepest rate in 15 months, reflecting mounting pressures that pushed selling prices to a six-month high, above their long-run average. Finally, sentiment hit its strongest level in a year, as firms expressed confidence that investment and marketing efforts will deliver results.

India’s Composite PMI by HSBC came in at 58.4 in January 2026, below the flash print of 59.5 yet higher than December’s 11-month low of 57.8. The figure points to a solid pace of expansion, driven by improved momentum among goods producers and service providers. New order growth reached a two-month high, fueled by stronger demand across both manufacturing and services. Employment also picked up after stagnating in December, with modest job creation recorded in both sectors. On the price front, input cost and output charge inflation accelerated to four- and three-month highs respectively, though remained muted by historical standards.

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.