India’s HSBC Composite PMI slipped to 57.4 in June 2026 from 59.3 in May, according to flash estimates. This marked the lowest reading since March, as momentum eased in both the manufacturing and services sectors.
New orders rose at the slowest pace in three months, while external demand, though still solid, expanded at its weakest rate in 21 months. Employment continued to grow, but hiring slowed to the softest pace in the current six‑month expansion, leaving backlogs of work broadly unchanged.
On the cost side, input prices increased further, driven by higher material costs. However, overall input cost inflation moderated for the third consecutive month, reaching its lowest level since January. At the same time, firms raised output prices at the slowest pace in six months, reflecting more cautious pricing strategies amid softer demand and heightened competition.
Looking ahead, business confidence weakened to its lowest point since January and remained below its long‑run average, indicating a more cautious outlook for activity in the coming months.
