India’s Economic Activity Slows in November, Flash PMIs Show
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India’s economic activity slowed in November, weighing on job creation, a flash survey by HSBC Holdings Plc showed, as the US’s steep tariffs continued to pinch the South Asian nation.
The manufacturing purchasing managers’ index slipped to 57.4 from 59.2 in October, while the services purchasing managers’ index climbed to 59.5 from 58.9 last month. That pushed the composite index down to 59.9 this month compared with 60.4 in October.
The expansion in new orders and business activity was at its slowest since May, HSBC said. “These developments, coupled with a lack of pressure on operating capacities, curbed job creation.”
The loss of momentum was reflected in October’s trade data. Exports to the US, India’s largest trading partner, slumped 8.6% that month as the 50% tariffs imposed by President Donald Trump hurt labor-intensive industries. The tariffs and broader global trade uncertainties pushed India’s trade deficit to a record high in October.
Cuts to the goods and services tax in September lowered prices on most household items and helped offset some of the impact of tariffs by boosting domestic demand. However, overall new orders in the manufacturing sector “came in soft, indicating that the GST-led boost may have peaked,” said Pranjul Bhandari, chief India economist at HSBC, in a statement on Friday.
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