
New Delhi, January 24, 2025: India’s private sector growth has started 2025 on a slower note, according to the latest HSBC flash PMI (Purchasing Managers’ Index), with both manufacturing and services showing signs of deceleration. The data reveals weaker business activity compared to previous months, particularly in the services sector, suggesting that economic growth is facing challenges due to reduced demand in both domestic and international markets.
While the manufacturing sector continues to grow, it shows signs of losing momentum due to subdued output growth and weaker new orders. The services sector, which had been a key growth driver in recent months, reported a dip in business activity, partly due to declining consumer spending. The PMI report also cites inflationary pressures and geopolitical uncertainties as contributing factors to the slowdown. Despite these challenges, business sentiment remains cautiously positive, although the pace of recovery may take longer than expected.