September 23, 2024
New Delhi, India
HSBC Flash PMI Report
India’s business activity slowed in September, with both output and new orders growing at their slowest pace in nine months, according to the HSBC Flash PMI survey compiled by S&P Global. The survey, which includes responses from 400 manufacturers and 400 service providers, indicated a moderation in growth while business confidence remained strong.
Employment Continues to Grow
Despite the slowdown in output, employment continued to grow at a solid pace, reflecting improved business confidence. The survey highlighted robust new business inflows, solid job creation, and positive growth expectations for the future.
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PMI Readings Show Slower Growth
- India Services PMI: The Services Purchasing Managers’ Index (PMI) fell to 58.9 in September, down from 60.9 in August, signaling a slight slowdown in services sector growth.
- India Manufacturing PMI: The Flash Manufacturing PMI Output Index also dipped to 60 in September from 60.3 in the previous month. The broader Manufacturing PMI fell to 56.7, down from 57.5 in August, marking the slowest growth since January.
- India Composite PMI: The Composite PMI Output Index, which combines both manufacturing and services sectors, decreased to 59.3 in September from 60.7 in August.
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Muted Inflation and Price Rises
Rates of input cost and output price inflation remained relatively muted, with service providers raising their charges at the slowest pace in over two years. This indicates that inflationary pressures in the services sector have eased slightly.
Softening of New Orders Growth
The survey also showed that while new orders and export orders continued to rise sharply, the pace of growth has softened. September saw the slowest rate of increase in new business activity for the year-to-date, marking a cooling of economic expansion compared to earlier in the year.
Outlook Remains Positive
While growth has moderated, the overall outlook for India’s business activity remains positive, with strong job creation and optimistic growth expectations. The survey suggests that the Indian economy is still in a phase of expansion, although at a slower pace than in previous months.
India’s business landscape continues to evolve, with stable employment gains offsetting slower growth in both manufacturing and services sectors.
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