India Composite PMI Confirmed at Over 4-Year Low

India’s HSBC Composite PMI was confirmed at 54.3 in July 2026, matching the flash estimate and marking its lowest level since March 2022. The latest reading eased from 57.1 in June, signaling the weakest expansion in private-sector activity since March 2022, as growth in the services sector slowed sharply, outweighing a slight pickup in manufacturing output. New orders rose at a softer pace across both sectors, with manufacturers continuing to outperform service providers. Despite the moderation in overall activity, employment growth accelerated to its fastest pace in three months, as stronger hiring in services more than offset slower job creation in manufacturing. Meanwhile, input cost inflation across the private sector eased to a six-month low, although firms raised selling prices at the fastest pace since April, pointing to resilient pricing power.

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.