Overview of India's Private Sector Output
India's private sector output grew at its slowest rate since November 2023 due to a softened pace in new business intake within the services sector, despite robust growth in the manufacturing sector, according to the HSBC flash Purchasing Managers' Index (PMI) survey.
Key Findings of the PMI Survey
- The PMI index fell to 57.9 in January from December's reading of 59.2.
- This index measures the monthly change in combined output of India's manufacturing and service sectors and has remained above the growth-contraction threshold of 50 for 42 consecutive months.
- Manufacturing sector's PMI rose to 58 from 56.4 in December, the strongest since July 2024.
- The services sector's PMI decreased to 56.8 in January from 59.3 in December, indicating a slowdown.
Sector-Specific Insights
- In manufacturing, new export orders showed a notable rise, and input cost inflation eased.
- In services, there was a cooling of growth in new domestic business.
Employment Trends
- Job creation strengthened across manufacturing and services, with January's employment expansion being the best since data collection began in December 2005.
- Both permanent and temporary workers were hired on part- and full-time bases.
Data Collection and Release Schedule
- The flash PMI collects 75 to 85 percent of the total 800 responses from services and manufacturing firms monthly.
- The final manufacturing PMI for January will be released on February 3, with services and composite figures following on February 5.
