U.S. and Indian Economies See Slowdown in January

In January 2025, both the U.S. and Indian economies experienced a slowdown in private sector growth, albeit with different dynamics. In the U.S., business activity hit a nine-month low amid rising price pressures and concerns over President Trump's trade policies, although there was an uptick in hiring and manufacturing expansion. Meanwhile, India's private sector growth decelerated to a 14-month low, primarily due to a contraction in the services sector, despite robust performance in manufacturing. The HSBC Flash India Composite Output Index dropped to 57.9, reflecting weakened domestic demand in services but improved export orders. Both countries' business confidence remains cautiously optimistic, with the U.S. benefiting from job creation and India seeing record-high hiring numbers, suggesting potential resilience.