India’s Business Activity Analyzed
India’s business activity is growing, but it’s slowing down a bit. The HSBC Flash India Composite Output Index showed growth at 58.9 in December, which is great news. However, it was slightly lower than November’s 59.7, suggesting growth isn’t as fast as it was.
- India’s business growth is still expanding steadily.
- December’s growth was slightly slower than the month before.
- Expansion in manufacturing and services decreased moderately.
- New orders rose, but the pace of growth slowed down.
- Businesses kept hiring the same number of people.
- Inflation remained low, supporting economic activity.
The main reason for the slower growth is a decrease in new orders. Even though businesses are getting more customers, they aren’t ordering as much as before. This means companies aren’t expanding as quickly.
Manufacturing activity also cooled down a little, as seen in the HSBC Flash India Manufacturing PMI at 55.7. This sector saw slower increases in output and new orders. Staffing levels remained unchanged, reflecting a cautious approach.
Despite the slowdown, businesses are still confident, and new export orders increased – reaching a three-month high. This shows some areas of the economy are still doing well.
Companies are holding onto more inventory and suppliers are delivering goods faster, which is a positive sign. Overall, India’s economy is still moving forward, but at a more moderate pace.
