India's Private Sector Growth Moderates in May Amid Manufacturing Slowdown and Global Tensions

India's private sector growth eased slightly in May 2026, with the HSBC Flash Composite PMI dipping to 58.1 from 58.2 in April, indicating continued expansion but at a moderated pace. The slowdown was mainly due to weaker manufacturing activity, where output and new orders grew at their slowest rates in nearly four years, affected by the Middle East conflict and disrupted export demand. Meanwhile, the services sector showed resilience with a marginal increase in activity and employment. Rising input costs, especially in manufacturing, pressured firms, though output price increases remained subdued. Business optimism declined to a three-month low amid persistent global uncertainties.