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June Flash PMIs Show India Expanding While European and UK Services Slip

Lower energy prices after a mid‑June US‑Iran interim agreement have eased input‑cost inflation, leaving growth vulnerable to persistent services weakness and weaker hiring.

Garment workers stitch clothes at a textile factory in Noida, India, July 31, 2025. REUTERS/ Bhawika Chhabra
Workers walk between precision-machining machines for automotive parts inside a factory at Kyowa Industrial Co. in Takasaki, Gunma Prefecture, Japan April 11, 2025.  REUTERS/Issei Kato
A general view of interior of a Nucor steel factory in Blytheville, Arkansas, U.S., March 28, 2025.  REUTERS/Karen Pulfer Focht
A man amends a menu at a restaurant in Tower Hamlets, London, Britain, May 3, 2026. REUTERS/Jack Taylor

Overview

  • HSBC's flash India composite PMI fell to 57.4 on Tuesday, marking the slowest expansion in three months as services hit a 17‑month low and manufacturing eased to 54.5 with hiring momentum weakening.
  • The S&P Global flash eurozone composite edged up to 49.5 but stayed below the 50 growth threshold, with Germany's composite at 48.0 recording the fastest contraction in 18 months.
  • Britain's services PMI plunged to 48.7 on June 23, dragging the composite to 49.4 and producing sharp falls in new business and employment in the consumer‑facing sector.
  • U.S. manufacturing was strong, with S&P Global's flash manufacturing PMI in the mid‑50s driven by firms front‑loading orders, while factory employment fell to its lowest level in several years.
  • Survey data show input‑cost inflation cooled to its slowest pace since before the Middle East conflict as oil prices fell after the June 17 interim agreement, but supply‑chain risks and weak demand in services keep growth and jobs fragile and will shape central bank and business decisions in coming months.