- India's private sector activity eased slightly in December but remained robust overall
- The HSBC Flash India Composite Output Index fell to 58.9 from 59.7 in November
- Manufacturing PMI dropped to 55.7, marking the weakest growth in nearly two years
India's private sector activity eased slightly in December, though growth remained robust, according to data released by S&P Global on Tuesday.
The HSBC Flash India Composite Output Index, which tracks combined activity across manufacturing and services, fell to 58.9 in December from 59.7 in November. While the seasonally adjusted index signalled a slower pace of expansion, it stayed comfortably above the 50 mark that separates growth from contraction.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Andrew Harker, Economics Director at S&P Global Market Intelligence, said the flash PMI closed 2025 on a positive note, marking a year of strong private-sector growth. “Rates of expansion in output and new orders eased in December but remained sharp nonetheless. Firms were helped by inflationary pressures remaining muted as the year drew to a close,” he said, according to Reuters.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The December reading was the softest since February, reflecting weaker growth in new orders — a key indicator of demand — despite an acceleration in new export business to a three-month high, supported by demand from the US, UK, and the Middle East.
The slowdown was more pronounced in manufacturing. The manufacturing PMI slipped to 55.7 from 56.6, indicating the sector's weakest improvement in health in nearly two years. The services activity index also eased, falling to 59.1 from 59.8, pointing to softer growth in the dominant services sector.
Despite continued expansion in output, employment growth stalled, marking its weakest reading since early 2024. Firms said existing workforce levels were sufficient to manage workloads, leaving staffing largely unchanged.
The pause in hiring coincided with a further drop in business confidence. Overall sentiment declined for a third straight month, hitting its lowest level since July 2022, with the downturn led by the services sector.
Input costs and selling prices rose modestly, while factory output charges eased to their weakest level since March. While softer price pressures may offer some relief, analysts note that the data points to growing concerns that India's economic momentum could face headwinds heading into 2026.
India's Wholesale Inflation Narrows In November As Food Prices ImproveEssential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
