Fuel curbs were withdrawn and LPG prices fell as energy pressures eased, but softer PMI readings, a wider fiscal deficit and inflation risks kept policy concerns alive
HSBC's flash PMI survey shows softer demand, slower output growth and weaker hiring momentum across manufacturing and services sectors in June
The HSBC Flash India Composite PMI Output Index fell to 57.4 in June from 59.3 in May, as demand, hiring and business optimism softened across both key sectors
RBI's policy hold and India's stronger-than-expected GDP growth anchored a week marked by firm PMIs, fuel-price risks, trade talks and fresh Cabinet approvals
Manufacturing activity expanded at its fastest pace in 3 months in May, supported by stronger domestic demand, while input cost inflation remained elevated amid continued geopolitical uncertainties
Input cost inflation remained among the strongest seen in the past four years, driven by higher energy, fuel, material, and transportation costs amid the ongoing conflict in West Asia
The RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 51.8 in May from 52.2 in April, but was slightly above analysts' forecast of 51.6
India's pvt sector activity remained firmly in expansion territory in May, though growth in new orders, exports, employment and business activity softened marginally, HSBC's flash PMI survey showed
Strong services activity, a manufacturing recovery and Cabinet approvals across rail, cotton, semiconductors and shipping shaped a week of growth signals and policy moves
The reading remained above 50, which denotes expansion in activity, while a reading below that signifies contraction
The flash manufacturing PMI stood at 55.9 compared to 53.9 in March, while the services PMI came in at 57.9 versus 57.5 earlier
Industry 'takes a step back' as market uncertainty and cost pressures increase
Input cost inflation hit a 43-month high in March, while softer demand, market uncertainty and the West Asia war slowed new orders and output growth
However, the latest figure was significantly lower than the Flash India Manufacturing PMI of 57.5, released last month
The overall result suggests India's economy is expected to remain resilient this quarter after posting 7.8 per cent growth in October-December
The improvement was supported by robust total new orders which rose at he quickest pace since November
India's manufacturing activity picked up in January as new orders, output and hiring rose, lifting the PMI to a two-month high, though business confidence stayed subdued, S&P Global data showed
January manufacturing PMI: The rebound in January came after the seasonally adjusted PMI touched a two-year low of 55.0 in December 2025
The HSBC flash India Manufacturing PMI rose to 56.8 in January from 55 in December
India's factory activity grew at its slowest pace in 24 months in December as output and new orders softened, though the PMI stayed above the expansion threshold