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The latest HSBC PMI data, compiled by S&P Global, showed that a stronger expansion in the manufacturing industry in India was more than offset by a loss of growth momentum in the service economy.
Indian private sector companies started 2025 with a slowdown in growth. With the rise in new business intakes receding, aggregate output increased at the weakest pace since November 2023, HSBC Flash India PMI said Friday. Meanwhile, prices charged for goods and services rose at a faster rate than in December as cost pressures intensified. Falling from a final reading of 59.2 in December to 57.9 in January, the HSBC Flash India Composite* Output Index - a seasonally adjusted index that measures the monthon-month change in the combined output of India's manufacturing and service sectors - indicated the weakest rate of expansion for 14 months. Nevertheless, the headline figure was comfortably above its long-run average of 54.7. Sales expanded at manufacturing companies and their services counterparts, though the direction of growth differed. Factory orders rose at the quickest pace for six months, while the increase in services new business was the slowest since November 2023. Considering the size of India's service economy, private sector sales growth therefore eased at the start of the year, the PMI said. "The cooling in growth in new domestic business in the services sector, however, highlights a potentially emerging weak spot in the economy. New export business for service providers, on the other hand, looks set to maintain its growing momentum," said Pranjul Bhandari, Chief India Economist at HSBC. One area in which growth ticked higher in a broad-based fashion was exports. Both manufacturers and service providers indicated stronger increases than in December, which underpinned the fastest expansion in aggregate international sales for six months. The HSBC Flash India PMI is compiled by S&P Global from responses to questionnaires sent to survey panels of around 400 manufacturers and 400 service providers. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted. (ANI)
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