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www.projectstoday.comAugust 2025Economic Review 7Food Index decreased from 1.72 percent in May 2025 to 0.26 percent in June 2025. Final Index for the month of April, 2025 (Base Year: 2011-12=100): For the month of April, 2025, the final Wholesale Price Index and inflation rate for %u2018All Commodities%u2019 (Base: 2011-12=100) stood at 154.2 and 0.85 percent, respectively. PMI BUSINESS ACTIVITY INDEXManufacturing IndexIndian Manufacturing sector%u2019s performance continued to do well in July 2025, with the HSBC PMI Index scalling up to a 16-month high due to faster increases in new orders, output, and stocks of purchases. Rising from 58.4 in June to 59.1 in July, the HSBC India Manufacturing Purchasing Managers%u2019 Index signalled the strongest improvement in the performance of the sector since March 2024. The rise was linked to favourable demand conditions and successful marketing initiatives. Survey participants observed that the overall sales rose at the fastest pace in close to five years. Subsequently, production growth strengthened to a 15-month high in July 2025.On the purchasing side, goods producers%u2019 buying levels rose at a fractionally slower pace than in June, and one that was the second-fastest in 15 months. Although the export orders were best in over 14 years, the new export orders increased to a lesser extent than in June 2025. Due to increasing concerns over growing competition and inflation, the overall level of positive sentiment fell to its lowest mark in three years.Services IndexAt 60.5 in July 2025, the HSBC India Services PMI Index changed marginally from 60.4 in June 2025. The rate of expansion was the best seen since August 2024.Sustained increases in new business intakes were identified by survey members as the main aspect behind output growth. Indian service providers secured new work from Asia, Canada, Europe, the UAE and the USA.Finance & Insurance was the best performing sector in terms of both new orders and business activity. On the other hand, Real Estate & Business Services recorded the slowest increases.Service companies experienced an increase in their expenses at the start of the second fiscal quarter. The available data pointed to greater food, freight, and labour costs. The rate of inflation quickened from June 2025, though it remained mild in the context of historical data. July 2025 data pointed to the weakest increase in service sector employment in the last 15 months. Fewer than 2 percent of companies took on additional staff, with the vast majority indicating no change from June 2025.Composite IndexThe PMI findings for July revealed mixed signs regarding the performance of the Indian private sector. New orders and output expanded at quicker rates, while job creation receded and business optimism faded. Meanwhile, inflationary pressures gathered pace.The HSBC India Composite PMI Index was up fractionally from 61.0 in June to 61.1 in July. The upturn in business activity was supported by strengthening demand for Indian goods and services.At the composite level, the rate of sales growth hit a 15-month high. Nevertheless, firms downgraded growth expectations, with the Future Output Index slipping to its lowest mark since March 2023.