June sees softer growth in India’s private sector: Flash PMI data

Growth of India's private sector softened in the month of June, with slower demand for Indian goods and services, restricting the extent to which output levels were raised. Overall new orders volumes continued to rise strongly in June, despite the rate of expansion slowing to the weakest in three months. Growth eased at manufacturing firms and their services counterparts, as some companies struggled to secure new work. Competitive pressures, rising fuel prices and shortages of gas were often cited as hindrances.

According to the data report, the HSBC Flash India Manufacturing PMI eased from final reading of 55.0 in May to 54.5 in June, while HSBC Flash India Services PMI Business Activity Index also fell to 57.3 in June from May’s final reading of 59.8. Besides, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - was down from a final reading of 59.3 in May to 57.4 in June.

Besides, the report noted that export trends were mixed in June, as faster growth in the service economy contrasted with the weakest increase at manufacturers since March 2023. At the composite level, international sales expanded at a solid pace that was nevertheless the slowest in 21 months. Further, there was a softer expansion in aggregate employment. Hiring activity at both goods producers and service providers was the least marked since December 2025.

The report also showed receding inflationary pressures and downgraded growth forecasts among survey participants. Companies remained confident of an increase in output over the coming 12 months relative to present levels, but the overall degree of optimism was the weakest since January and below the long-run series average. Notably, the level of positive sentiment at manufacturers fell to the lowest in close to four years.