Composite PMI Falls to 57.1 in June; Growth Pressured by Cost and Job Creation Slump

Mumbai, July 3 – India's composite Purchasing Managers' Index, a blend of manufacturing and services data, registered 57.1 in June, down from 59.3 in May, as released by HSBC. The decline mirrors a broader slowdown in economic activity, hiring and price inflation.

While the services PMI stayed above the expansion line at 57.4, the composite figure reflects weaker overall momentum. HSBC chief economist Pranjul Bhandari linked the dip to easing input costs and lower output charges as geopolitical tensions in the Middle East eased, reducing price pressures.

The services sector still posted the fastest three‑month rise in new export orders, offset by a noticeable drop in domestic demand. Companies citing growth pointed to competitive pricing, heightened e‑commerce demand, stronger local tourism and higher booking rates. Those facing a slowdown referenced challenging market conditions and diminishing customer interest.

The data suggests that, despite resilient foreign demand, India’s economy is confronting a slowdown in sales volumes, job creation and price growth, which could temper expectations for the coming months.