New Delhi, May 21: India’s private sector economy showed a marginal easing in growth momentum in May, according to the latest HSBC Flash India Purchasing Managers’ Index (PMI) data, as global geopolitical tensions continued to weigh on market sentiment.
The Composite Output Index stood at 58.1 in May, slightly lower than 58.2 in April, indicating a mild slowdown in the pace of expansion. Despite the dip, the reading remains well above the 50-mark threshold, reflecting continued overall growth in private sector activity.
The data suggests that while business conditions remain broadly positive, external uncertainties are beginning to influence momentum. Companies across manufacturing and services sectors reported steady demand, but noted cautious sentiment due to global economic and geopolitical developments.
Economists observe that India’s private sector continues to demonstrate resilience, supported by strong domestic demand and stable business activity. However, ongoing external shocks are expected to keep growth trends uneven in the near term.
Overall, the latest PMI reading points to a stable but slightly moderating growth environment, with India’s economy continuing to expand despite global headwinds.