- HSBC India Composite PMI rose to 58.9 in February, fastest growth in 3 months
- Services PMI slipped to 58.1, indicating a slight slowdown but still expansion
- New business growth slowed to the weakest pace since January 2025
India's private sector activity strengthened in February, with the HSBC India Composite Purchasing Managers' Index (PMI) rising to 58.9 from 58.4 in January, marking the fastest pace of expansion in three months, according to data compiled by S&P Global.
The composite index, which tracks activity across both manufacturing and services, signalled robust overall economic momentum even as growth in the services sector eased slightly during the month.
The HSBC India Services PMI slipped to 58.1 in February from 58.5 in January, coming in below the preliminary estimate of 58.4. While the reading remained well above the 50-mark that separates expansion from contraction, it indicated a modest slowdown in services activity.
Demand growth showed signs of moderation. New business expanded at its slowest pace since January 2025, with firms reporting intensifying competition despite increased marketing and promotional efforts.
However, international demand provided some support, with services companies reporting the strongest rise in export orders since August amid improving overseas demand.
At the same time, businesses faced growing cost pressures. Survey respondents reported the sharpest increase in operating expenses in two-and-a-half years, driven largely by higher food prices along with rising energy and labour costs.
Companies responded by passing part of this burden on to consumers, resulting in service charges rising at the fastest rate in six months.
Across sectors, finance and insurance posted the strongest gains in both output and new orders, while real estate and business services saw the slowest growth, highlighting uneven momentum within the broader services economy.
India's manufacturing sector grew at its quickest pace in four months in February, driven largely by strong domestic demand even as export growth eased to its weakest level in 17 months, according to a monthly survey released on Monday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) climbed to 56.9 in February, up from 55.4 in January, marking its highest reading since October.
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