January 2025 Flash PMI Data: Services Growth Hits 14-Month Low At 56.8, Manufacturing Activity Hits Six-Month High At 58

In January 2025, private sector activity in India saw its sharpest slowdown in 14 months, according to the HSBC Flash Purchasing Managers’ Indices (PMI).

While manufacturing witnessed a significant upswing in new orders, a marked deceleration in the services sector offset overall growth.

S&P Global, which conducts the PMI surveys of around 400 firms in manufacturing and services, stated, “Indian private sector companies started 2025 with a slowdown in growth. With the rise in new business intakes receding, aggregate output increased at the weakest pace since November 2023.”

The HSBC Flash India Composite Output Index, a key indicator of combined manufacturing and services activity, slipped to 57.9 in January from December’s 59.2.

Though still above 50, indicating expansion, this drop highlights slowing momentum.

The services sector, measured by the HSBC Flash India Services PMI, fell from 59.3 in December to 56.8 in January.

While global sales for service providers reached a six-month high, domestic demand weakened significantly.

In contrast, the manufacturing PMI rose from 56.4 to 58, marking the sector’s strongest growth since July 2024, driven by robust new orders.

Cost pressures diverged sharply across sectors.

Manufacturing firms reported the slowest rise in input costs in 10 months, while service providers faced an 18-month peak in expenses due to rising prices of chemicals, labour, and other inputs.

Interestingly, capacity pressures increased across the private sector.

Outstanding business volumes rose at the fastest rate in nearly two-and-a-half years, with services firms surpassing manufacturers in this parameter.

While manufacturing confidence surged to its highest level since May 2024, optimism among service providers dipped to a three-month low. 

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