India’s private sector output in January grew at the slowest pace since November 2023. According to the HSBC Flash Purchasing Managers’ Index (PMI) survey released on Friday, lack of new business has slowed the services sector and also affected the rapid growth of the manufacturing sector. The index compiled by L&P Global fell to 57.9 in January from 59.2 in December.
However, the index measuring monthly changes in India’s manufacturing and services sectors remained above the 50 level, indicating expansion in business activity. The index has been above 50 for the 42nd consecutive month.
The survey said, ‘The latest HSBC Flash PMI data compiled by S&P Global shows that the manufacturing industry has expanded rapidly, compensating for the sluggish pace of growth in the services economy. However, the price of goods and services has increased rapidly and cost pressure has increased.
The manufacturing sector’s flash PMI, which tracks new orders, output, employment, supplier delivery times and inventory levels, showed signs of improvement in factory conditions. PMI increased to 58 in January, which was 56.4 in December. This is the strongest position after July 2024.
On the contrary, there has been a slowdown in the service sector. The flash PMI of the services sector has declined to 56.8 in January, which was 59.3 in December. Pranjul Bhandari, chief India economist at HSBC, said India’s manufacturing sector has started the year strongly with output and new orders rising, having been comparatively weak in the third quarter.