India’s Business Activity Expands at Slower Pace in December, HSBC Flash PMI Dips to 58.9

New Delhi, Dec 16 (KNN) The HSBC Flash India Composite PMI Output Index survey which measures the month-on-month change in the combined output of India's manufacturing and service sectors dipped in December 2025 to 58.9 as against 59.7 in November this year indicating expansion in business activities but at a slower pace.

The HSBC Flash India PMI is compiled by S&P Global and is based on responses from around 400 manufacturers and 400 service providers.

A PMI reading above 50 indicates economic expansion, while the score below it shows contraction in the manufacturing and services sectors. A print of exactly 50 denotes no change.

The private survey said that growth in business activity slowed in both manufacturing and service sectors during December this year. Further, softer increases in output reflected moderation in new orders which continued to rise sharply amid reports of improving customer demand.

"While the pace of expansion in total new orders eased, the rate of growth in new export orders accelerated in December and was at a three-month high," said the survey compiled by S&P Global.

The survey participants reported having received new orders from a range of export markets, including Australia, Bangladesh, Canada, Germany, the Middle East, Sri Lanka, the UK and the US during December this year.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said that HSBC Flash India PMI (purchasing managers' index) ended 2025 in positive fashion, completing a year of marked growth for the private sector.

"Rates of expansion in output and new orders eased in December, but remained sharp nonetheless. Firms were helped by inflationary pressures remaining muted as the year drew to a close," noted Harker.

No Change in Job Scenario

Citing anecdotal evidence from companies across both manufacturing and services sector, the survey said that current staff strength was enough to handle new orders. As a result, employment levels remained broadly unchanged in December, with a minor increase in workforce numbers.

As per the survey, manufacturing sector staffing levels were up marginally in December, while services employment was broadly stable.

Price Stability

As per the S&P Global survey, inflationary pressures remained muted in December. Input costs increased modestly, and at a pace that was only slightly faster than the near five-and-a-half-year low posted in November. Moreover, the pace of inflation was slower

than the series average. The survey findings noted only a mild increase in inflation across both the manufacturing and service sectors.

Future Outlook

Talking about the outlook for business activity in 2026, the survey said that companies remained confident that growth will be maintained. However, their optimism continued to soften.

"In fact, sentiment dipped for the third month running in December to the lowest since July 2022," it said.

The drop in confidence was mostly centred on the service sector as manufacturing optimism ticked up from the previous survey period.

(KNN Bureau)