India Composite PMI Revised Higher

India’s HSBC Composite PMI rose to 59.3 in May 2026, surpassing the preliminary estimate of 58.1 and reaching its highest level since November. The reading also improved from 58.2 in April, pointing to a stronger expansion in private-sector activity. Growth accelerated across both manufacturing and services, supported by robust demand and sustained business momentum. Total new orders increased at the fastest pace in six months, highlighting solid underlying economic activity. At the same time, inflationary pressures showed signs of easing. Charge inflation slowed, with aggregate selling prices rising at the weakest rate since January and broadly in line with the long-run average. Input cost inflation also moderated, although it remained above both output price inflation and its historical trend.

India’s HSBC Composite PMI stood at 58.1 in May 2026, little changed from a final 58.2 in the prior month, flash data showed. Services growth strengthened but was offset by softer factory output, which rose at its second-slowest pace since mid-2022. Gains in new orders, exports, and employment all eased amid fallout from the Middle East conflict, while backlogs slipped marginally below the neutral 50 mark, signaling limited capacity pressures. Firms nevertheless continued hiring. On inflation, input costs accelerated to their second-highest level in nearly three years, driven by higher energy, raw material, and transport costs. Output price inflation, however, cooled to its weakest since January and remained well below input cost growth. Lastly, business confidence stayed positive and above its long-run average, though it fell to a three-month low.

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.