In June 2025, the HSBC India Composite PMI increased to 61.0, up from 59.3 the previous month, surpassing market predictions of 59.4. This figure represents the highest level since April 2024, according to preliminary data. The surge stemmed from accelerated growth in both the manufacturing and services sectors, with new orders reaching their peak since July 2024. This growth was driven by unprecedented expansion in export orders due to robust demand from regions such as Asia, Europe, the Middle East, and the Americas. Employment saw a further uptick, with job backlogs persisting over the past three and a half years. Manufacturing job creation hit its zenith, though hiring in the services sector decelerated slightly.
Regarding pricing, input costs saw a modest increase, with inflation dropping to its lowest in ten months and below the long-term average. Output price inflation also eased from May's six-month peak, as some companies increased prices to cover costs, while others withheld increases to remain competitive. Lastly, business sentiment slightly dipped to its lowest level in over two months, yet it stayed in line with the historical trend.
