New Delhi, July 24: India’s private sector remained in expansion territory in July, with the HSBC Flash India Composite Purchasing Managers’ Index (PMI) registering 54.3, indicating continued growth despite a moderation in business activity. The index, compiled by S&P Global, remained above the crucial 50-point mark that separates expansion from contraction.
The latest PMI reading, however, reflected a slowdown in the pace of growth compared with June’s 57.1, as weaker momentum in the services sector weighed on overall private sector performance. Services activity eased to a 53-month low, while manufacturing showed greater resilience and continued to support economic expansion.
Export demand provided a positive boost, with international sales recording strong growth. Businesses also continued to increase hiring, reflecting confidence in sustained demand conditions.
Companies reported rising input costs driven by higher fuel, labour, material and transportation expenses. Businesses responded by increasing output prices, indicating renewed pressure on margins and inflation trends.
Commenting on the survey findings, economists noted that while growth momentum has moderated, India’s private sector continues to demonstrate resilience amid global uncertainties and changing market conditions. The expansion in PMI signals ongoing economic activity, even as businesses remain cautious about cost pressures and demand challenges.