The Composite flash Purchasing Managers’ Index (PMI) experienced a quicker growth in February after three consecutive quarters of softening, a report from HSBC stated. This indicates an increase in private sector growth for the current quarter. The Composite flash PMI reached a robust 60.6, surpassing last month’s reading of 57.7. The uptick was driven by a significant acceleration in the services sector activity.
“Manufacturing flash PMI, too, reported a healthy acceleration, albeit at a soft pace than last month. January and February combined data suggest that after softening for 3 quarters in a row, the PMI composite index may tick higher in the current quarter,” HSBC said.
In light of this recent development, Ritesh Jain, Founder of Pinetree and Nrizen, as well as a strategic advisor, expressed that while investors may have lost faith in India, the country has actually just achieved its highest composite PMI in 6 months. This stands in sharp contrast to the PMI reported in the US today.
“I know investors have given up on India .. but India just recorded the highest composite PMI in 6 months … in complete contrast to US PMI announced today. The details are even more positive.
“The HSBC India Composite PMI increased to 60.6 in February 2025 from 57.7 in the previous month, flash data showed. This was the highest figure since last August, significantly topping its long-run average of 54.1. Service activity rose the most in eleven months while the manufacturing sector slowed. New orders went up the most in six months, mainly driven by the steepest upturn in new business intakes since August for service providers. Further, foreign sales grew at the fastest rate in 7 months, with goods producers leading in this area. Job creation hit a new series peak despite another rise in outstanding business. Regarding inflation, input prices were moderate by historical standards, with the inflation rate hitting a 4-month low”
Rising PMI in India with contained inflationary pressure is complete opposite of US with falling PMI and rising input prices…,” Jain posted on social media platform X.
US PMI vs India PMI
The HSBC report indicated that India’s Manufacturing flash PMI also showed a positive acceleration, though at a slower rate compared to the previous month. The combination of data from January and February suggests that after a trend of softening for three consecutive quarters, the PMI composite index could potentially increase in the current quarter. The report highlighted that rapid restocking globally has contributed to an increase in India’s new goods export orders. Additionally, the recent depreciation of the currency might further boost the growth of India’s fast-expanding services exports sector.
According to HSBC, the preliminary India PMI numbers for February offer an early glimpse into the expected final figures for manufacturing, services, and composite PMI data. These preliminary numbers are typically published about a week before the final PMI indices are released. The flash PMI is usually calculated using around 80-90% of the total survey responses received each month, all of which contribute to the final release.
In comparison, Compared to the previous month, the US S&P Global Composite PMI decreased to 50.4 in February from 52.7 in January, suggesting a weakening expansion in private sector business activity. On the other hand, the S&P Global Manufacturing PMI slightly increased from 51.2 to 51.6, indicating continued expansion in the manufacturing sector. However, the Services PMI saw a decline from 52.9 to 49.7, signaling a decrease in momentum in the services sector.