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Business Upturn
8 hours ago
- Business
- Business Upturn
India's June flash composite PMI output index rises to 61.0, highest in 14 months
By Aditya Bhagchandani Published on June 23, 2025, 10:41 IST India's private sector activity accelerated sharply in June 2025, with the HSBC Flash India Composite PMI Output Index climbing to 61.0, up from 59.3 in May, marking the strongest monthly expansion in 14 months, according to data released by S&P Global. This surge was driven by robust increases in both manufacturing and services activity. The HSBC Flash India Manufacturing PMI rose to 58.4 in June from 57.6 in May, while the Services PMI Business Activity Index increased to 60.7 from 58.8. Key factors behind this momentum included: A record rise in new export orders since the series began in 2014. since the series began in 2014. Strengthened demand from Asia, Europe, the Middle East, and the Americas . . Increased hiring, especially in the manufacturing sector. Softer input cost inflation, reaching a 10-month low. Commenting on the data, HSBC's Chief India Economist Pranjul Bhandari noted that India's strong growth in June was primarily fueled by export demand and rising backlogs, which in turn encouraged more hiring. Although both input and output prices rose, the pace of inflation moderated from earlier highs. The data, collected between June 9 and 18, signals strong momentum as India closes out the first quarter of FY26, with sustained optimism among businesses despite a slight decline in overall sentiment compared to previous months. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
04-06-2025
- Business
- Time of India
India's services sector maintains strong momentum in May; job creation hits record high
Photo: Agencies India's services sector showed continued strength in May, with businesses reporting solid growth in activity, hiring, and international demand. The HSBC India Services PMI Business Activity Index edged up to 58.8 from 58.7 in April, reflecting another sharp expansion. A reading above 50 indicates growth, while anything below signals contraction. The sector's momentum was underpinned by healthy demand conditions, effective advertising, and repeat orders from loyal customers. Firms also gained new clients and reported a surge in export orders, particularly from Asia, Europe, and North America. 'India registered a 58.8 services PMI in May 2025, broadly in line with the steady readings from recent months. Strong international demand continued to fuel services activity, as evidenced by the new export business index's uptick from April,' said Pranjul Bhandari, Chief India Economist at HSBC. With demand swelling, companies expanded their workforce at a record pace. Nearly 16 per cent of firms surveyed said they hired more staff, while only 1 per cent reported job cuts. The result: the strongest rate of job creation in the history of the survey. This hiring spree, along with overtime wages and higher input costs—especially for cooking oil, meat, and materials—led to increased cost pressures on firms. Output charge inflation also rose slightly above average. Despite the rising costs, businesses were more optimistic about the future. They expect larger client bases, improved staffing, and targeted marketing to boost activity in the coming months. Meanwhile, the HSBC India Composite PMI Output Index, which includes both manufacturing and services, came in at 59.3 in May—slightly down from 59.7 in April—mainly due to softer factory output, even as services grew faster. The survey, compiled by S&P Global, covered around 400 service sector firms including finance, transport, communication, and real estate. 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
May PMI rises to 61.2, highest since April 2024, driven by services sector
Flash HSBC India PMI signals sharpest expansion in 13 months as services see robust growth and employment gains; input cost inflation at five-month high New Delhi India's private sector is expected to post its sharpest expansion in over a year, with May's HSBC Flash India Composite PMI Output Index rising to 61.2, up from 59.7 in April, according to data compiled by S&P Global. This marks the strongest month-on-month growth since April 2024, driven largely by gains in the services sector. Services sector leads the charge The Services PMI Business Activity Index climbed to 61.2 in May from 58.7 in April, indicating the fastest pace of growth in 14 months. Respondents cited strong domestic and international demand, along with technology investments and capacity expansion, as key drivers. 'India's flash PMI indicates another month of strong economic performance,' said Pranjul Bhandari, Chief India Economist at HSBC. 'The services sector, especially, is showing firm employment gains, highlighting healthy job creation alongside business growth.' Manufacturing shows steady momentum The Manufacturing PMI rose marginally to 58.3 in May from 58.2 in April, suggesting continued strength. However, manufacturing output slipped slightly to 61.4, down from 61.9 the previous month. Despite the cooling in production, new orders and employment remained robust, maintaining the sector's growth trajectory. Input costs, output charges surge Input cost inflation hit a five-month high in May, while output prices surged, especially in manufacturing, which recorded its sharpest rise in over 11 years. These inflationary pressures were noted across both services and manufacturing, although firms continued expanding output to meet rising demand. Business confidence rebounds Despite ongoing geopolitical risks, including India–Pakistan tensions, business sentiment improved in May, reversing the decline seen in April. Firms expressed renewed optimism for future sales and activity, particularly in the services segment. Industrial production shows mixed signals India's Index of Industrial Production (IIP) grew by 3 per cent in March 2025, slightly better than February's 2.9 per cent, but still lower than 5.5 per cent in March 2024, according to the Ministry of Statistics and Programme Implementation. In Q4 FY25, IIP rose by 3.6 per cent, marking the second-lowest quarterly growth in the last two years. Final PMI figures for May 2025 will be released in early June. IIP data for April is expected on May 28, 2025.
Mint
22-05-2025
- Business
- Mint
India's private sector growth accelerates in May, led by services: HSBC Flash PMI
New Delhi: India's private sector gained momentum in May, led by a sharp acceleration in services activity, as strong demand from both domestic and international markets drove business expansion and hiring, according to the HSBC Flash India PMI survey released Thursday. Compiled by S&P Global, the survey also signalled a revival in business confidence, the first uptick since January. The HSBC Flash India Composite Output Index, which captures activity across both manufacturing and services, is estimated to have risen to 61.2 in May from 59.7 in April, indicating robust expansion. A reading above 50 denotes growth, and the index has now remained in expansion territory for over three years. 'The increase was the most pronounced since April 2024,' the report said. While manufacturing showed a slight slowdown in growth, the services sector posted its fastest output rise in 14 months, the survey noted. Based on responses from roughly 400 manufacturers and 400 service providers, the flash PMI offers an early estimate ahead of final data, which will be released early next month. The HSBC Flash India Manufacturing PMI edged up to 58.3 in May from 58.2 in April, signalling continued strength, albeit at a stable pace. In contrast, the Services PMI Business Activity Index surged to 61.2 from 58.7, while the Manufacturing Output Index dipped marginally to 61.4 from April's 61.9. 'While goods producers indicated the slowest increase in output in three months, service providers reported the fastest rise since March 2024,' the survey said. 'At the composite level, the latest upturn was the quickest in just over a year. Surveyed firms attributed the momentum to buoyant demand, investments in technology, and capacity expansion.' India's ambition to become a $10 trillion economy over the next decade is being propelled by growth in manufacturing, particularly in sectors such as semiconductors, electronics, electric vehicles, renewables, and defence. To support this goal, the government has ramped up capital investment in infrastructure, job creation, and industrial development. "India's flash PMI indicates another month of strong economic performance. Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Pranjul Bhandari, Chief India Economist at HSBC. 'Notably, there is a firm pickup in employment, especially in the services sector, suggesting healthy job creation is accompanying the expansion of India's manufacturing and services sectors,' she added.
