India’s economic activity slowed in June, flash PMI shows

[NEW DELHI] India’s economic activity slowed this month as cost pressures and softening demand weighed on businesses, a flash survey by HSBC Holdings showed Tuesday (Jun 23).

The composite index fell to 57.4 in June from 59.3 in May following declines in both manufacturing and services indexes.

The indexes, reflecting business confidence in the economy, are based on preliminary surveys. The data may be revised when final PMI figures are released next week. A reading above 50 indicates expansion in economic activity, while a print below that indicates contraction.

“Private sector activity eased a bit in June. Growth of manufacturing output softened a tad as inventory-building lost steam after a few hectic months,” said Pranjul Bhandari, chief India economist at HSBC in a statement.

Fuel costs and energy availability became a growing concern during the survey period as tensions in the Middle East disrupted gas supplies and briefly pushed oil prices higher.

Since then, however, India’s economic outlook has brightened as geopolitical risks eased and crude prices retreated from recent highs, offering relief to the world’s third-largest oil importer. BLOOMBERG