BENGALURU: India’s private sector activity grew at its slowest pace in 10 months in December, weighed down by weaker new orders, while hiring activity nearly stalled, according to a private business survey released on Tuesday.
The data indicate that while growth in the world’s third-largest economy remains robust, momentum has eased from the 8.2 per cent expansion recorded in the latest quarter, reinforcing expectations that inflationary pressures remain 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, the lowest reading since February. A reading above 50 indicates expansion.
The moderation was driven by softer growth in new orders, a key measure of demand, even as new export business rose to a three-month high. The slowdown was more pronounced in manufacturing, where output growth eased to its weakest level in two years.
The Flash Manufacturing PMI declined to 55.7 from 56.6 in November, while the Services PMI edged down to 59.1 from 59.8.
Despite continued expansion in output, employment growth weakened sharply, with the jobs index falling to its lowest level since early 2024 and hovering just above the neutral 50 mark. Companies reported that existing workforce levels were largely sufficient to meet current demand.
As a result, overall employment remained broadly unchanged in December, with only a marginal rise in manufacturing jobs and stable staffing levels in services. Business optimism also softened for a third straight month, falling to its lowest level since July 2022, led by declining sentiment in the services sector.
Input costs and selling prices increased modestly, while factory output price inflation eased to its weakest level since March.
Firms benefited from subdued inflationary pressures toward the end of the year, S&P Global said.