PMI Data Signals Cooling Demand
Manufacturing Weakness Drags Momentum
India’s private-sector activity lost steam this month, with the flash HSBC Composite PMI slipping to 59.9 — the slowest pace of expansion in six months. Manufacturing suffered the most, dropping to 57.4, while services held relatively stable. Analysts attribute the softening to weak output, slower hiring, and rain-related disruptions in several states.
Export orders also fell, partly due to the increasingly competitive global environment and tariff-related pressures in major markets. Businesses reported shrinking international demand coupled with higher input costs, forcing many to delay expansion plans.
To counter this slowdown, the government has rolled out a support package of over $5 billion, focusing on credit guarantees and targeted loans. Economists say the next quarter will be crucial, as business sentiment remains cautious and job creation shows signs of strain.
