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(14 Aug 2025, 18:28)

India PMI data releases in focus; FOMC Meet minutes eyed for cues on Federal Reserve’s policy path


Indian equities head into next week under cautiously supportive conditions, with sentiment underpinned by stable domestic cues and selective sectoral resilience. On the home front, the economic calendar is relatively light, which may limit immediate data-driven volatility.

Global developments could take center stage. The US will see the release of several high-impact economic indicators, which could shape expectations for the Federal Reserve’s policy path. Any significant surprises in these numbers may spill over into emerging markets, including India, via changes in global risk appetite and foreign capital flows.

On August 18, India’s unemployment rate for the month of July would be announced. The unemployment rate in India stood at 5.6% in June 2025, unchanged from the previous month. Jobless rate went down in in rural areas from 5.1% in May to 4.9% in June, while in urban areas, it went up from 6.9% to 7.1%.

The Manufacturing PMI, the Services PMI and the Composite PMI values for the month of August would be unveiled on August 21.

The HSBC India Manufacturing PMI was revised slightly lower to 59.1 in July 2025 from a preliminary estimate of 59.2, although it remained above June’s reading of 58.4. It marked the highest level since March 2024, highlighting the sector’s continued strength.

The HSBC India Services PMI was revised higher to 60.5 in July 2025, up from the preliminary estimate of 59.8, slightly above June’s reading of 60.4 and market forecasts of 60. This marked the fastest expansion in the services sector since August of last year, driven by strong growth in new orders, foreign sales, and output.

The HSBC India Composite PMI came in at 61.0 in July 2025, unchanged from the previous month but above the flash estimate of 60.7. It was the highest reading since April 2024, underpinned by robust services activity, which saw its fastest expansion in 11 months, and manufacturing growth that reached a near 18-month high.

In China, the Loan Prime Rate for 1-year and 5-year tenors would be announced on August 20.

The People’s Bank of China kept key lending rates at record lows during the July fixing. The decision came amid mounting signs of slowing growth momentum, weighed down by sweeping US tariffs, sluggish domestic demand, and a prolonged property slump. The one-year loan prime rate (LPR)—the benchmark for most corporate and household loans—was held steady at 3.0%, while the five-year LPR, which guides mortgage rates, remained unchanged at 3.5%.

In the United States (US), slew of data releases are scheduled for next week.

The Building Permits Preliminary figure for July 2025 would be released on August 19. Building permits in the United States decreased by 0.1% to a seasonally adjusted annualized rate of 1.393 million in June 2025, revised down from a preliminary estimate of 1.397 million.

On the same day, the Housing Starts data for the month of July would also be made public. Housing starts in the United States rose by 4.6% from the previous month to a seasonally adjusted annualized rate of 1.321 million in June of 2025, trimming the revised 9.7% slide in the previous month.

On August 20, the FOMC Minutes would be released. The Fed held rates steady at 4.25%–4.50% for a fifth straight meeting, as expected, but two governors dissented in favor of a cut—the first such dual dissent since 1993. Policymakers observed that, while fluctuations in net exports continue to influence the data, recent indicators point to a moderation in economic activity in H1—contrasting with earlier assessments that growth was proceeding 'at a solid pace'.

Lastly, the Existing Home Sales data for July 2025 would be announced on August 21. US existing-home sales fell 2.7% from the previous month to a seasonally adjusted annual rate of 3.93 million units in June 2025, down from 4.04 million in May.


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