Private sector output rises at slow pace in March compared to Feb.
Though composite purchasing managers’ index or PMI (both services & manufacturing) indicated a slower growth, the manufacturing sector alone in the index — which is a composite measure of new orders, output, employment, supplier delivery times, and inventory levels — showed an improvement in operating conditions that was broadly aligned with the average for FY25
New Delhi: Private sector output in India rose at a slower pace in March compared to the previous month, amid a quicker expansion in manufacturing activity and a softer increase in services activity. Despite slowing to a six-month low, the aggregate pace of job creation was solid by historical standards. Nevertheless, a value above 50 implies growth in private sector activity and the index has stayed above this level for more than three years now, a private survey showed on Monday.
As per the HSBC’s flash PMI, compiled by S&P Global, the index slipped to 58.6 in March from February’s final reading of 58.8, lower than experts’ prediction of 59.0. However, India services PMI business activity Index was 57.7 in March against 59.0 in February final reading, while the country’s manufacturing PMI output was increased to 60.6 in the same month against 58.1 in February.
Though composite purchasing managers’ index or PMI (both services & manufacturing) indicated a slower growth, the manufacturing sector alone in the index — which is a composite measure of new orders, output, employment, supplier delivery times, and inventory levels — showed an improvement in operating conditions that was broadly aligned with the average for FY25.
Commenting on the survey, Pranjul Bhandari, chief India economist at HSBC said that India’s manufacturing sector expanded at a faster pace in March. “The output index rose to its highest level since July 2024. Yet the margin squeeze on manufacturers intensified as input price inflation ticked up while factory gate prices rose at the weakest rate in a year. The moderation in new export orders growth was also noteworthy amid tariff announcements,” Bhandari said.
As per the survey, India's private sector economy ended the FY25 on strong footing, sustaining robust expansions in new business intakes and output. “Rates of growth softened from February, though remained well above their respective long-run averages. 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 survey has noted further that nevertheless, efforts to stay on top of workloads and fulfil rising demand needs prompted private sector companies to hire extra staff in March. “Despite slowing to a six-month low, the aggregate pace of job creation was solid by historical standards. For the first time in seven months, manufacturers signalled a faster increase in headcounts than service providers,” it said.
