Private sector activity fell to 14-month low in January: Industry survey

Private sector activity in India fell to a 14-month low in January, showed the HSBC Flash Composite Purchasing Managers’ Index publihed on Friday.

The index, which measures month-on-month changes in the combined output of the country’s manufacturing and service sectors, fell to a flash value of 57.9 in January from the final reading of 59.2 in December.

An index value of more than 50 indicates an expansion in economic activity as compared to the previous month. The value has remained above the 50-mark for three-and-a-half years, the longest continuous growth streak since mid-2013, Reuters reported.

“Indian private sector companies started 2025 with a slowdown in growth,” said United States-based financial analytics firm S&P Global. “With the rise in new business intakes receding, aggregate output increased at the weakest pace since November 2023.”

The firm surveys about 400 companies each in the manufacturing and services sectors.

The manufacturing index was at a six-month high of 58.0 in January. It was 56.4 in December.

The services index fell from 59.3 in December to 56.8 in January, the lowest in 26 months.

Meanwhile, manufacturers and service providers indicated an increase in growth, which “underpinned the fastest expansion in aggregate international sales for six months”.

Job creation in manufacturing and services also reached an all-time high since comparable data became available in December...

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