India Business Activity Cools to 10-Month Low in December

• India's business activity cooled to a 10-month low in December, with the HSBC Flash India Composite PMI at 58.9.
• Growth moderated in both manufacturing (PMI 55.7) and services (PMI 59.1), though both sectors continued to expand.
• New export orders reached a three-month high, driven by demand from the US, UK, Germany, and parts of Asia and the Middle East.
• Inflationary pressures remained muted, with modest increases in input costs and subdued output price inflation.
• Hiring remained cautious, and business confidence weakened to its lowest level since mid-2022, particularly in the services sector.

Why It Matters: India's cooling business activity signals a potential economic slowdown.