India’s business activity eased in December as HSBC’s flash Purchasing Managers’ Index (PMI) readings showed a modest slowdown across manufacturing and services. The manufacturing PMI stood at 55.7 versus a forecast of 57.2, while the services PMI came in at 59.1 against 60.1, signaling continued expansion but at a slower pace.
India’s economic activity remained firmly in expansion territory in December, though momentum softened across sectors, according to HSBC’s flash PMI survey. The composite PMI, reflecting both manufacturing and services output, eased to 58.9 from the forecast of 59.3, pointing to resilient but moderating business sentiment toward year-end.
Key Highlights:
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Manufacturing PMI: Declined slightly to 55.7 in December (forecast 57.2), reflecting a mild slowdown in new orders and production growth.
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Services PMI: Registered at 59.1 (forecast 60.1), indicating robust demand in the services sector but a tempered pace of activity compared to November.
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Composite PMI: Stood at 58.9 versus 59.3 projected, underscoring continued economic expansion well above the 50-mark threshold separating growth from contraction.
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Market Implications: The data suggests moderation after months of strong momentum, influenced by softer domestic demand and global headwinds.
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Outlook: Analysts expect business conditions to stay favorable despite the slight slowdown, supported by festive-season spending and stable macro fundamentals.
Sources: HSBC Global Research, S&P Global, Reuters