India’s Private Sector Growth Slows to 10-Month Low in December
India’s private sector activity expanded at its slowest pace in ten months in December, as weaker new orders and stalled hiring weighed on overall growth, according to a business survey released on Tuesday. While the economy continues to grow, the data indicate a gradual slowdown from the strong 8.2% expansion recorded in the previous quarter, even as inflationary pressures remained subdued.
HSBC’s Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, slipped to 58.9 in December from 59.7 in November, marking its lowest level since February. The slowdown was driven mainly by softer demand, reflected in slower growth in new orders, although export orders improved to a three-month high. Manufacturing showed notable moderation, with growth easing to its weakest pace in two years, while services activity also edged lower.
Despite continued expansion, hiring nearly stalled, with employment growth at its weakest since early 2024. Companies reported that existing staff levels were largely sufficient to meet current demand, leading to minimal workforce additions. Business confidence declined for the third straight month to its lowest level since July 2022, particularly in the services sector, although firms benefited from muted inflation and modest increases in input and selling prices.
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