India Private Sector Growth Hits Over 4-Year Low

India’s HSBC Composite PMI fell to 54.3 in July from a final 57.1 in the prior month, flash data showed. It was the lowest reading since March 2022, reflecting the impact of persistent hostilities in the Middle East on business activity. Services sector growth slowed sharply while factory output accelerated. New orders rose at the weakest pace in near 4-1/2 years amid challenging market conditions, intense competition, and order cancellations. Still, export orders grew the most since March, while employment increased for a seventh straight month. Outstanding business fell for the first time in three months, largely due to backlog clearances in the services sector. On the price front, input cost inflation accelerated, driven by higher fuel, labor, material, and transport costs. Meanwhile, output price inflation hit the strongest level since April. Finally, sentiment eased to a six-month low, with stronger optimism among manufacturers offset by weaker mood in the services sector.

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.