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Time of India
an hour ago
- Business
- Time of India
Private sector activity rises to 14-month high in June
New Delhi: India's private sector activity surged to a 14-month high in June, supported by both the manufacturing and services sectors, according to a private survey released on Monday. Favourable demand trends, efficiency gains, and investment in technology supported output, survey respondents noted. The HSBC Flash India Composite Output Index rose to 61 in June from 59.3 in May. The Composite Purchasing Managers' Index (PMI) is a weighted average of comparable manufacturing and services indices. Growth in the manufacturing sector climbed to a 14-month high of 58.4 in June, while the services sector expanded to a 10-month high of 60.7. "India's flash PMI indicated strong growth in June. New export orders continued to fuel private sector business activity, especially in manufacturing," said Pranjul Bhandari, Chief India Economist at HSBC. Live Events Private sector firms reported strong growth in export orders, particularly among manufacturers, although international sales at services firms expanded at a slower pace. Companies noted strong demand from Asia, Europe, the Middle East, and the Americas. Robust demand and a rise in outstanding business volumes encouraged Indian firms to hire staff. "The combination of robust global demand and rising backlogs prompted manufacturers to increase hiring," said Bhandari. Both full- and part-time employees were hired across permanent and temporary roles, according to anecdotal evidence. Employment growth reached an all-time high in the manufacturing industry, the survey said. "Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June," noted Bhandari. On the cost front, firms reported a marginal increase in input prices in June, driven by higher labour and metal (copper, iron, and steel) costs. However, the rate of inflation eased to a 10-month low, the survey noted. "Qualitative data showed that while some firms hiked their fees in response to greater expenses, others refrained from doing so in order to secure new business," it added. Bhandari said that both input and output prices continued to rise in manufacturing and services firms, but the pace of increase showed signs of softening. Looking ahead, positive business sentiment fell to its lowest level in over two years, according to the survey. There was a mild improvement in manufacturers' confidence compared to a downgrade in expectations among service providers, the survey concluded.
The Hindu
7 hours ago
- Business
- The Hindu
Economic activity expanded at the fastest pace in 14 months in June: PMI survey
An index measuring India's combined manufacturing and services performance rose to a 14-month high in June, driven by strong export demand. The HSBC Flash India Composite Output Index rose to 61 in June from 59.3 in May. A reading above 50 indicates an expansion, and one below 50 denotes a contraction. 'The latest reading was consistent with a sharp rate of expansion that was well above the long-run series average,' the report said. 'Notably, the upturn in export orders was the strongest since comparable data became available in September 2014,' it read. The report also noted that the growth in activity in June was led by manufacturers, although growth picked up pace in the service economy as well. 'Meanwhile, the combination of robust global demand and rising backlogs prompted manufacturers to increase hiring,' Pranjul Bhandari, chief economist at HSBC said. 'Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June.' In addition, cost and inflationary pressures receded for both manufacturing and services companies. 'Input prices across the private sector increased only modestly during June,' the report said. 'Where a rise was reported, firms cited higher labour and metal (copper, iron and steel) costs. That said, the rate of inflation softened to a ten-month low and was below its long-run average. Slower increases were noted in both the manufacturing and service economies.'
Time of India
7 hours ago
- Business
- Time of India
India's private sector: PMI surges to a 14-month high of 61.0; strong demand lifted activity in June
India's private sector activity showed strong momentum in June, reaching its fastest pace in over a year, as firms ramped up production to meet booming domestic and international demand. These figures marked nearly four straight years of growth, fresh survey data released on Monday. The HSBC Flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, jumped to a 14-month high of 61.0 from May's 59.3. Both manufacturing and services saw strong gains. The services activity index rose to 60.7 from 58.8, its strongest reading since August 2023, while the manufacturing PMI climbed to 58.4 from 57.6, driven by strong output and a spike in new orders. 'New export orders continued to fuel private sector business activity, especially in manufacturing,' Pranjul Bhandari, chief India economist at HSBC, told Reuters. Export demand was a standout, with new international business growing at the fastest pace since the survey began tracking such data in September 2014. Manufacturers led this surge, outpacing the more moderate growth seen by service providers. Hiring activity also saw a notable uptick. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like AVIK 4 BHK Floors - Golf Course Road Extn, Gurgaon Birla Navya AVIK Click Here Undo Manufacturers reported their strongest employment growth since records began over 20 years ago, while service sector hiring remained solid, though slightly slower than in May. 'The combination of robust global demand and rising backlogs prompted manufacturers to increase hiring,' Bhandari said. Price pressures offered some relief as input cost inflation eased to a 10-month low, enabling companies to hold back on passing costs to customers. As a result, output price rises moderated after hitting a six-month high in May. May's figures showed consumer prices at a six-year low, which may give the Reserve Bank of India more room to support growth and consider cutting interest rates, especially in light of global trade uncertainties. Despite the upbeat data, overall business confidence dipped to its lowest level in over two years. Manufacturers showed slightly improved sentiment, but service firms expressed caution about the year ahead. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
10 hours ago
- Business
- India Gazette
HSBC Flash India composite output Index climbs to 14-month high
Mumbai (Maharashtra) [India], June 23 (ANI): The HSBC Flash India Composite Output Index, which tracks month-on-month changes in combined output from manufacturing and services, rose to 61.0 in June from 59.3 in May - the highest in 14 months and well above the long-term average. Indian businesses recorded a sharp rise in export orders in June, marking the strongest upturn since records began in 2014, according to the latest HSBC Flash Purchasing Managers' Index (PMI) data. The data shows strong momentum in both manufacturing and services, with companies scaling up output to meet rising domestic and international demand. Pranjul Bhandari, Chief India Economist at HSBC, said, 'India's flash PMI indicated strong growth in June. 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.' Bhandari added, '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.' Manufacturing led the growth, with the Manufacturing PMI Output Index climbing to 61.5 in June from 60.3 in May. The overall Manufacturing PMI rose to 58.4, its best level since April 2024, signalling improved operating conditions. Service sector activity also picked up, supported by rising demand, efficiency improvements, and technology investments. Companies saw a significant increase in new business, particularly in exports. Survey respondents noted strong international demand from regions including Asia, Europe, the Middle East, and the Americas. While manufacturing exports surged, service sector exports also rose, though at a slower pace. As backlogs of work continued to grow - now for the 42nd consecutive month - businesses responded by hiring more staff, including both permanent and temporary workers. Employment in manufacturing hit a record high, while hiring in services was slower than in May. Despite higher demand, cost pressures eased, with input prices rising at their slowest pace in ten months. Companies cited modest increases in labour and metal prices, but the overall rate of cost inflation remained below the long-term average. Selling prices for goods and services continued to rise, but at a slower pace than in May, as many firms avoided passing on costs to attract more business. Looking ahead, Indian firms remain optimistic about the future, although overall business confidence dipped slightly to a two-year low. Manufacturers showed slightly stronger optimism, while sentiment among service providers was more cautious. (ANI)
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.
