Private Sector Activity Slows in March on Tardy Services Show

New Delhi: India's private sector activity moderated to 58.6 in March due to a slowdown in services activity, according to a private survey released on Monday.

The HSBC Flash India Composite Output Index was at 58.8 in February and 61.8 in March 2024.

The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices.


However, the survey noted that India's private sector ended FY25 "on strong footing, sustaining robust expansions in new business intakes and output".

"Manufacturing was March's brighter spot, posting quicker increases in sales and output that were faster than those registered in the service economy," the survey noted.

The HSBC Flash India Manufacturing PMI rose to 57.6 in March from 56.3 the month before.

"India's manufacturing sector expanded at a faster pace in March, according to the flash PMI. The output index rose to its highest level since July 2024," said Pranjul Bhandari, chief economist at HSBC.

The survey highlighted that output, new orders and stocks of purchases recorded an increase in March compared with February.

In contrast, the HSBC Flash India Services PMI Business Activity Index slowed to 57.7 from 59.0 in February.

The pace of expansion in the services sector was the second slowest since November 2023, with firms citing heightened competitive pressures, the survey said.