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Informist, Tuesday, Jun. 23, 2026

 

--India June flash composite PMI output index 57.4 vs 59.3 May final

--India June flash services PMI activity index 57.3 vs 59.8 May final

--India June flash manufacturing PMI 54.5 vs 55.0 in May final

 

NEW DELHI – India's private sector activity slowed down in June to the weakest since March, with moderation in growth seen across the manufacturing and services sectors, S&P Global said Tuesday. Growth slowed mainly due to cost pressures and softening demand conditions curbing the upturn in business activity, S&P Global, which compiles the PMI, said in a release.

 

The HSBC Flash Composite Purchasing Managers' Index eased to 57.4 in June, the lowest in three months, from 59.3 in May. The flash figure for services PMI fell to a 17-month low of 57.3 in June while the manufacturing PMI was 54.5, the lowest in three months. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

The flash figures showed receding inflationary pressures and downgraded growth forecasts among survey participants, S&P Global said. "Growth of manufacturing output softened a tad as inventory-building lost steam after a few hectic months," Pranjul Bhandari, chief India economist at HSBC, said.

 

Manufacturing and services firms saw a moderation in growth in June, as some companies struggled to secure new work due to competitive pressures, rising fuel prices, and shortages of gas, S&P Global said. At the composite level, international sales expanded at the slowest pace in 21 months, it added.

 

The moderation in new business growth also stymied job creation in June, according to S&P Global. "Hiring activity at both goods producers and service providers was the least marked since December 2025," it said.  

 

Private sector companies reported a month-on-month rise in their expenses in June, stemming from higher raw material prices such as chemicals, food, fuel, and gas, S&P Global noted. "That said, the overall rate of inflation eased for the third successive month to its lowest since January." The survey showed that cost pressures remained more pronounced in the manufacturing segment than in services.

 

Global energy prices remained high in the first half of June but have since come down sharply after the US and Iran last week announced an interim peace agreement to stop the war in West Asia.

 

Despite slower growth and higher expenses, 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, S&P Global said. Hence, goods producers limited buying activity in June, rising at the weakest pace in two and a half years. This led to a softer increase in stocks of purchases and a decline in inventories of finished products, S&P Global added.  End

 

Reported by Shweta

Edited by Deepshikha Bhardwaj

 

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