India's Private Sector Growth Slumped to over Four-Year Low in July, PMI Shows
HSBC said services growth slowed to a 53-month low as firms faced cancellations, weaker demand and higher costs, while hiring and exports provided support.
- A flash survey by HSBC Holdings Plc showed Friday that India's private sector growth reached its weakest pace in over four years, with the India Composite Purchasing Managers Index falling to 54.3 from June's 57.1.
- Renewed tensions in the Middle East weighed heavily on demand, dragging the services PMI to 53.1 from June's 57.4, its weakest reading since February 2022. This decline constrained overall expansion.
- Manufacturing activity eased to 53.9 from 54.2, while input costs rose due to higher fuel and material expenses, pushing output price inflation to a three-month high.
- Pranjul Bhandari, chief India economist at HSBC, stated firms are increasing inventories to guard against supply disruptions. Despite the slowdown, the composite PMI remains above 50, indicating continued expansion.
- Final PMI figures released next week may revise the current data as The Reserve Bank noted that geopolitical uncertainty and deficient monsoon rains remain key threats to growth.
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The Hindu Business Line
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India’s private sector growth slumped to over four-year low in July, PMI shows
BENGALURU, July 24 (Reuters) - India's private sector growth skidded to its weakest in over four years in July as a sharp slowdown in services constrained overall expansion even though rising export orders and hiring offered limited support, a survey...
The Economic Times
Times of IndiaIndia's private sector growth slumped to over four-year low in July, PMI shows
Indias private sector growth slowed sharply inJuly, reaching its weakest level in more than four years, mainly due to a significant slowdown in theservices sector. The HSBC Flash India Composite PMI, compiled by S&P Global, declined to54.3 in July from 57.1 in June, though it remained above the 50-point threshold indicating continued expansion.
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