India Composite PMI Revised Lower

India’s HSBC Composite PMI fell to 57.1 in June 2026 from May’s 59.3, below the flash estimate of 57.4 and marking the lowest reading since March. The latest data pointed to softer expansions in both manufacturing and services activity. New orders grew at the weakest pace in three months, while employment increased at its slowest rate so far this year. Overseas demand also lost momentum, with export orders rising at the weakest pace in nearly two years. As growth moderated, easing cost pressures allowed businesses to scale back price increases. Input cost inflation eased to a five-month low, while output price inflation slowed to a seven-month low. Looking ahead, business confidence slipped to a five-month low, as both manufacturers and service providers became less optimistic about future output.

India’s HSBC Composite PMI fell to 57.4 in June 2026 from a final 59.3 in the prior month, flash data showed. It was the lowest reading since March as growth slowed across both the manufacturing and services sectors. New orders expanded the least in three months while overseas demand remained resilient despite growing at its slowest rate in 21 months. Employment continued to rise, though its rate of increase was the weakest in the current six-month expansion, leaving backlogs of work broadly unchanged. On the price front, input costs rose further, due to higher material prices, but overall cost inflation eased for a third straight month to its lowest since January. Meanwhile, firms raised selling prices at the slowest pace in six months, reflecting cautious pricing amid softer demand and intense competition. Looking ahead, confidence weakened to its lowest level since January and remained below the long-run average, signaling a more cautious outlook for activity in the months ahead.

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.