The HSBC Flash India Composite PMI is an economic concept and a seasonally adjusted index that provides a timely, early snapshot of business conditions in India's private sector. It is formally known as the Composite Output Index and is a weighted average of the Manufacturing Output Index and the Services Business Activity Index. The index has been tracked since at least 2013, and its data is compiled by S&P Global and sponsored by HSBC. The "Flash" designation means the estimate is released approximately one week before the final data, based on responses from about 75%–85% of the total survey panel.
The index works by surveying a panel of around 400 manufacturers and 400 service providers. The Composite Output Index is calculated using weights that reflect the relative size of the manufacturing and service sectors based on official GDP data. A reading above 50 indicates an expansion in private sector activity compared to the previous month, while a reading below 50 signals a contraction. The index connects directly to the two underlying indices: the Manufacturing PMI and the Services Business Activity Index. The Manufacturing PMI itself is a weighted average of five sub-indices: New Orders (30%), Output (25%), Employment (20%), Suppliers' Delivery Times (15%), and Stocks of Purchases (10%). The methodology for the flash estimate is identical to the final PMI, and while the final data is not revised after publication, the seasonal adjustment factors may be amended over time.