The service sector growth is expected to slow as the Flash PMI was at 57.7 in March. (Representational image)
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India’s HSBC Flash PMI slipped to 58.6 on a slower service sector activity in March 2025, as against 58.8 in February 2025, according to a statement from HSBC.
A value above 50 implies growth in private sector activity and the index has stayed above this level for more than three years now. The Flash PMI is an early indicator which gives data based on 80% to 90% of the responses from the survey participants.
The service sector growth is expected to slow as the Flash PMI was at 57.7 in March. The final value was 59 in February 2025. The slowdown in growth of service sector output may be attributable to higher prices in comparison to manufacturers and a slower growth in new business from abroad. Manufacturing Flash PMI came in at a faster 57.6 in March 2025, as against 56.3 February 2025.
“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. 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,” wrote Pranjul Bhandari, Chief India Economist at HSBC.
Demand remained strong and volumes grew, HSBC said in its statement. Hiring in March 2025, increased in response to an increase in the work load. Headcount in manufacturing sector increased for the first time in seven months, the survey observed.
Operating expenses increased across the board with service sector feeling the pinch more than manufacturers. Despite higher operating costs, competitive conditions prevented companies from passing a large share of the increase in prices to the customers, the statement read.
‘Business confidence remained strongly positive, but the overall level of sentiment slipped to a seven-month low in March. Fierce competition featured as the main worry among survey participants in the qualitative part of the survey. Both manufacturers and service providers were slightly less upbeat towards output prospects than in February,” HSBC noted.
Published – March 24, 2025 02:44 pm IST
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