%20(3).jpg)
HSBC Flash PMI Shows Slowest Business Growth Since May as Rains, Weak Demand Hit Activity
HSBC Flash PMI: India's economic activity slowed slightly in November. The HSBC Flash India Composite Output Index reached a six-month low, pointing to a slowdown in the manufacturing sector and weak demand. Let's explore this in detail.
In November, the HSBC Flash India Composite Output Index fell to 59.9 from 60.4 in October, according to data from S&P Global. The reading is at a six-month low, but still well above the neutral 50.0 mark, which reflects an increase in overall business activity.
This index measures the month-over-month change in the combined output of the manufacturing and services sectors. According to the report, new orders and business activity continued to expand, but at the slowest pace since May. Weak demand and heavy rains in parts of the country were key factors impeding growth.
Pranjul Bhandari, Chief India Economist at HSBC, said, "The manufacturing PMI declined, although operating conditions remain robust. Growth in new export orders remained flat in October, but overall new orders fell, indicating that GST-driven growth has peaked. Cost pressures have eased, and prices have also declined."
