India’s manufacturing and services activity moderated in November, with the combined HSBC Flash India Composite Output Index easing to a six-month low of 59.9 from 60.4 in October. Despite the dip, the survey compiled by S&P Global showed that overall growth across both sectors remained solid and well above the neutral 50 mark.

For the first time since June, the composite index slipped below 60, signalling slower momentum. Manufacturing activity softened to a nine-month low of 57.4, while services accelerated to 59.5, up from 58.9 in the previous month. A reading above 50 indicates expansion.

HSBC’s Chief India Economist, Pranjul Bhandari, said manufacturing PMI eased but operating conditions remained healthy. She noted that export-order growth matched October’s pace, even as overall new orders softened, suggesting the GST-driven demand boost may have peaked. Input-cost pressures also eased, leading to softer price rises.

The survey highlighted a weaker rise in new manufacturing orders, while demand strengthened in services. At the composite level, sales growth remained sharp but was the slowest in six months, with firms citing challenges in securing new business and disruptions caused by heavy rainfall.

Slower sales growth and reduced backlogs also held back job creation. Employment increased for the forty-second consecutive month, though at the weakest pace in over eighteen months. Hiring growth eased across both manufacturing and services firms.

(Source: Deccan Chronicle)