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New Indian Express
10 hours ago
- Business
- New Indian Express
Private sector activity soars to 14-month high in June
MUMBAI: Private sector output grew at its fastest pace in 14 months in June, printing in a reading of 61, boosted by faster jumps in total new business intakes as well as international sales, showed a private survey. The flash composite purchasing managers index (PMI), released by HSBC India, rose to 61 in June, up from a downward revised figure of 59.3 in May. The index, which measures monthly changes in the combined output of manufacturing and services, has been above the 50-mark which separates growth from contraction for the 47th month on the trot, the bank said Monday. Manufacturers led the upturn in business activity, though growth also picked up pace in the services economy. According to the participants of the survey, output was boosted by favourable demand trends, efficiency gains and tech investment. 'New business placed with goods producers and service providers increased at the end of the first fiscal quarter, with the faster upturn among the former. At the composite level, the rate of expansion was the strongest seen since July 2024,' said the survey. Pranjul Bhandari, the chief economist at HSBC India, said the flash PMI for May indicates strong growth in June as new export orders continued to fuel private sector business activity, especially in manufacturing. 'A combination of robust global demand and rising backlogs prompted manufacturers to increase hiring. Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June. Finally, input and output prices continued to rise for both manufacturing and services firms, but rates of increase showed signs of softening,' she said. Flash PMI records 75-85% of the 800 responses from services and manufacturing firms each month. 'June data show an intensification of capacity pressures among companies. Outstanding business volumes rose at a modest pace that was faster than in May and a tick above its long-run average. Moreover, the current sequence of rising backlogs was extended to three-and-a-half years. Rates of accumulation were broadly similar among manufacturing firms and their services counterparts,' she read. On the employment front, the survey notes that the combination of demand strength and rising backlogs prompted companies to recruit additional staff in June as anecdotal evidence indicated that both full- and part-time employees were hired for permanent and temporary positions. Employment growth reached a series peak in the manufacturing industry, while service providers signalled a slower upturn in job creation than in May.
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Business Standard
12 hours ago
- Business
- Business Standard
Private sector business activity rises to 14-month high in June: PMI data
India's private sector output grew at its fastest pace in 14 months in June, helped by faster increases in total new business intakes and international sales, showed a private survey on Monday. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 61, up from a downward revised figure of 59.3 in May. The index, which measures monthly change in the combined output of manufacturing and services, has been above the 50-mark that separates growth from contraction for the 47th consecutive month. 'Manufacturers led the upturn in business activity, though growth also picked up pace in the service economy. Rates of increase were at two- and ten-month highs, respectively. According to panellists, output was boosted by favourable demand trends, efficiency gains and tech investment,' said the survey. The HSBC Flash India Manufacturing PMI rose to 58.4 in June from 57.6 in May. The latest figure – a weighted average of new orders, output, employment, suppliers' delivery times and stocks of purchases indices –signalled the best improvement in operating conditions since April 2024. 'New business placed with goods producers and service providers increased at the end of the first fiscal quarter, with the faster upturn among the former. At the composite level, the rate of expansion was the strongest seen since July 2024,' said the survey. Pranjul Bhandari, chief India economist at HSBC, said the flash PMI for May indicates strong growth in June as new export orders continued to fuel private sector business activity, especially in manufacturing. 'Meanwhile, the combination of robust global demand and rising backlogs prompted manufacturers to increase hiring. Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June. Finally, input and output prices continued to rise for both manufacturing and services firms, but rates of increase showed signs of softening,' added Bhandari. Flash PMI records 75 per cent to 85 per cent of the 800 responses from services and manufacturing firms each month. The final manufacturing PMI figure for June will be released on July 1, while the services and composite PMI figures will be released on July 3. 'June data showed an intensification of capacity pressures among Indian companies. Outstanding business volumes rose at a modest pace that was faster than in May and a tick above its long-run average. Moreover, the current sequence of rising backlogs was extended to three-and-a-half years. Rates of accumulation were broadly similar among manufacturing firms and their services counterparts,' the survey read. On the employment front, the survey noted that the combination of demand strength and rising backlogs prompted Indian companies to recruit additional staff in June as anecdotal evidence indicated that both full- and part-time employees were hired for permanent and temporary positions. The employment growth reached a series peak in the manufacturing industry, while service providers signalled a slower upturn in job creation than in May.
Time of India
22-05-2025
- Business
- Time of India
India's private sector growth touches 13-month high in May, buoyed by services: HSBC
India's private sector activity picked up pace sharply in May, reaching its fastest rate of expansion in over a year, lifted by a surge in the services sector, as per the HSBC Flash PMI data released on Wednesday. The HSBC India Composite PMI Output Index climbed to 61.2 in May from 59.7 in April, the strongest growth seen since April 2024. This expansion was fueled by service providers, which saw the fastest rise in output in 14 months. The HSBC Flash India Services PMI Business Activity Index rose sharply to 61.2 in May from 58.7 in April, fuelled by solid demand, strong inflows of new business, and renewed confidence among firms. "The increase was the most pronounced since April 2024. There was a mild loss of growth momentum in the manufacturing industry but service providers reported the fastest rise in output in 14 months," HSBC said, quoted by ANI. While the services sector surged, the manufacturing industry showed mixed signals. The manufacturing PMI output index dipped slightly to 61.4 in May from 61.9 in April. However, the overall manufacturing PMI, which considers output, new orders, employment, delivery times, and inventories, rose to 58.3 from 58.2, indicating a healthy sector despite the mild slowdown in output. May's upturn in private sector performance marked the strongest monthly expansion since April last year as businesses across the services sector saw faster expansion in business activity and employment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 21st Century Skills Start with Confident Communication Planet Spark Learn More Undo Firms reported solid inflows of news businesses including both from domestic and those overseas. Confidence among businesses also rebounded for the first time since January, which firms attributed to strong demand, investments in technology, and increased production capacity. However, rising costs remained a concern. The survey indicated that both input costs and selling prices rose at the quickest rate since late 2024, reflecting a fresh build-up in inflationary pressures. Manufacturing sector reported the slowest growth of the last three months, while the services sector dominated the momentum, propelling the overall private sector to a 13-month high in activity. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
22-05-2025
- Business
- Business Standard
Private sector business activity rises to 13-month high in May: PMI data
India's private sector output grew at its fastest pace in 13 months in May, helped by a sharp rise in services that prompted the sector to employ more people, said a private survey on Thursday. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 61.2, up from a downward revised figure of 59.7 in April. The index, which measures monthly change in the combined output of manufacturing and services, has been above the 50 mark that separates growth from contraction for the 46th consecutive month. "The increase was the most pronounced since April 2024. There was a mild loss of growth momentum in the manufacturing industry but service providers reported the fastest rise in output in 14 months," said the survey. The HSBC Flash India Manufacturing PMI was at 58.3 in May, little changed from April's reading of 58.2. The latest figure – a weighted average of new orders, output, employment, suppliers' delivery times and stocks of purchases indices –was consistent with a sharp improvement in the health of the sector. 'While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March 2024. At the composite level, the latest upturn was the quickest in just over a year. Monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities,' said the survey. Pranjul Bhandari, chief India economist at HSBC, said the flash PMI for May indicates another month of strong economic performance as growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April. 'Notably, there is a firm pick up in employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India's manufacturing and service sectors," she said. Flash PMI records 75 per cent to 85 per cent of the 800 responses from services and manufacturing firms each month. The final manufacturing PMI figure for May will be released on June 2; services and composite PMI figures will be released on June 4. 'May data showcased reduced pressure on the operating capacities of Indian private sector companies, as outstanding business volumes rose at the slowest pace since September 2024. Service providers noted the weakest increase in backlogs for eight months and goods producers signalled no change since April,' said the survey. Composite PMI Output Index Flash Final Jan 2024 61 61.2 Feb 61.5 60.6 March 61.3 61.8 April 62.2 61.5 May 61.7 60.5 June 60.9 60.9 July 61.4 60.7 Aug 60.5 60.7 Sep 59.3 58.3 October 58.6 59.1 November 59.5 58.6 December 60.7 59.2 January 2025 57.9 57.7 February 60.6 58.8 March 58.6 59.5 April 60 59.7 May 61.2 Source: HSBC
The Hindu
23-04-2025
- Business
- The Hindu
Flash India PMI expands to 60 in April on record-high export orders
The HSBC India Flash Purchasing Manager's Index (PMI) expanded to 60 points in April on increasing export orders, as against 59.5 in the previous month, S&P Global said in a statement. Services flash PMI increased to 59.1 from a final number of 58.5 from March 2025. Manufacturing flash PMI output index came in at 61.9 from a final value of 61.7 in the previous month, according to the statement. Services grew at a faster pace than manufacturing. Flash PMI is an early indicator of business sentiment in private sector, measured based on about 80% of the responses to the survey to determine the sentiments. A value above 50 means expansion. 'New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs. As a result, output and employment grew, for both, manufacturers and service providers. Cost inflation was in line with March levels, but prices charged rose a tad faster, leading to improved margins,' Pranjul Bhandari, Chief India Economist at HSBC said in the statement. Companies reported increased output, positive demand and successful advertising, HSBC said, adding that some of them benefitted from the depreciation of the rupee as international orders increased. Competition and inflation could be headwinds to the higher expected output, according to the statement. HSBC forecast that India's GDP growth would be hit by 0.5 percentage points due to the tariffs. 'The indirect and second-order negative impact could also be meaningful, emanating from slower export volumes around the world, weaker global FDI flows, and the re-routing of exports hurting manufacturing,' Ms. Bhandhari said in her research note.
