India’s business growth slowed in December (PMI 58.9), but acceleration in new export orders promises stability for logistics firms.
India’s pace of economic growth decelerated in December, registering the slowest expansion since February, according to data released on 16 December 2025.
The HSBC Flash India Composite Output Index, a key measure of the combined monthly output of the services and manufacturing sectors, dropped to 58.9 from 59.7. This decline in the seasonally adjusted index signals that both major sectors are experiencing a more subdued level of business activity.
Andrew Harker, economics director at S&P Global Market Intelligence, observed that the HSBC Flash India PMI concluded 2025 positively, marking a year of significant private sector growth. He noted that although the expansion rate for output and new orders eased in December, it was still notably strong. Businesses benefited from low inflationary pressures as the year ended.
Growth in new domestic orders softened in December, yet new export orders showed a robust acceleration, hitting a three-month high. This strong overseas demand supported the overall economy.
The manufacturing sector, in particular, recorded its weakest improvement in two years, with its index falling to 55.7.
Companies reported that their input costs rose marginally, slightly higher than the previous month’s near five-and-a-half-year low. However, businesses successfully maintained stable staffing levels, believing their current workforce was adequate to manage the incoming workload.
Despite the ongoing expansion, business confidence weakened for the third consecutive month, reaching its lowest point since July 2022. While firms anticipate growth next year, this sustained drop in optimism suggests companies are becoming more cautious in their forward planning.
SOURCE – BUSINESS STANDARD
