India Composite PMI Holds Near April Level in May

The HSBC India Composite PMI stood at 58.1 in May 2026, little changed from a final 58.2 in the previous month, flash estimates showed. Stronger growth in the services sector was largely offset by softer factory output, which expanded at its second-slowest pace since mid-2022.

India’s HSBC Composite PMI registered 58.2 in April 2026, just shy of the flash estimate of 58.3 but higher than 57.0 in the previous month, pointing to a sustained and historically strong expansion in private sector activity. Growth remained broad-based, with both manufacturing output and services activity rising at solid rates. Total new orders rose at a faster pace, exceeding the long-run average and signaling resilient demand conditions. On the price front, manufacturing companies continued to face greater cost pressures, reporting sharp increases in both input costs and output charges compared to the services sector. In terms of prices, input cost inflation eased from March but still marked the second-highest reading since August 2023, suggesting persistent underlying cost pressures. Meanwhile, output price inflation softened, with firms raising selling prices at the slowest pace in three months.

The HSBC India Composite PMI rose to 58.3 in April 2026 from a final 57.0 in the pevious month, which had marked the lowest level since late 2022, amid disruptions linked to the Middle East conflict. Flash estimates signaled a strong pace of private-sector expansion, staying well above its long-run average. Growth was driven by faster manufacturing output, while services activity continued to expand robustly. New orders accelerated at a historically strong pace. Employment rose the most in ten months, with hiring picking up across both manufacturing and services firms. However, growth in new export business softened. On prices, input cost inflation was the second-steepest in nearly three years, driven by higher fuel, gas, oil, and raw material costs. Output price inflation remained elevated but was well below the pace of input cost increases. Finally, business confidence eased from March’s level but remained the second-highest in almost 1-1/2 years.