India’s private sector stumbled into 2025, with services losing steam and the HSBC Flash PMI dropping to 57.9 in January, the slowest expansion in 14 months.
The HSBC Flash India Composite Output Index, a key measure of activity in the manufacturing and services sectors, slipped to 57.9 in January from 59.2 in December, marking the slowest pace of expansion since November 2023.
HSBC Flash Manufacturing PMI rose to 58.0 in January from 56.4 in December — its highest level since July 2024. The HSBC Flash Services PMI fell to 56.8 in January from 59.3 in December.
A reading above 50 signals growth, while a figure below 50 indicates contraction.
“Manufacturing had a robust start to the year, with new orders and output recovering from recent lows. Export demand also saw notable improvement,” said Pranjul Bhandari, chief India economist at HSBC. “However, the deceleration in domestic services growth highlights potential vulnerabilities in the broader economy.”