Composite PMI rises to 13-mth high in May
At 61.2 in May, the HSBC Index showcased a sharp rate of expansion in private sector activity. '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,' according to a HSBC Flash India PMI note.
The HSBC Flash India Manufacturing PMI was little changed from April's reading of 58.2. At 58.3 in May, the latest figure was consistent with a sharp improvement in the health of the sector.Private sector growth in India moved up a gear during May, boosted by an acceleration in the service economy.
Strong influxes of new business, both from domestic and international markets, induced quicker expansions in business activity and employment. There was also an improvement in business confidence for the first time since January, said the HSBC.
'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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Indian homebuilder Sobha's Q1 profit up 125% on premium housing demand
Indian real estate developers have capitalized on a post-pandemic shift in buyer preferences towards larger, amenity-rich apartments by securing land deals and swiftly launching new projects Reuters Indian homebuilder Sobha reported a first-quarter profit on Friday that more than doubled, helped by higher prices and sustained demand for premium apartments. The Bengaluru-based real estate company, which logged record sales in the June-quarter, said its consolidated net profit rose to 136.2 million Indian rupees ($1.58 million) from ₹60.56 million year. Revenues rose 33 per cent to ₹8.52 billion. In recent years, Indian real estate developers have capitalized on a post-pandemic shift in buyer preferences towards larger, amenity-rich apartments by securing land deals and swiftly launching new projects. But with the frenzy cooling in some parts of the country, homebuilders have pivoted from chasing higher sales towards timing their launches as per shifts in demand, analysts have said. National elections delayed approvals for project launches last year across the real estate industry - which hampered timelines for Sobha as well until recently. With approvals-related bottlenecks easing, analysts at HSBC expect the current fiscal year to mark a "turnaround" for the company (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
News18
9 hours ago
- News18
India's Private Sector Growth Stays Strong In July, Manufacturing PMI Hits Over 17-Year High
Last Updated: July's HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, stands at 60.7, which is well above the 50-level that separates growth from contraction. India's private sector continued to expand at a solid pace in July, backed by strong performance in manufacturing and firm overseas demand, according to the latest HSBC Flash India Composite PMI released by S&P Global. Manufacturing remained the key growth driver. The HSBC Flash India Manufacturing PMI rose to 59.2 — the highest level in over 17 years — from 58.4 in June. The HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, stood at 60.7 in July. Though it is slightly lower than June's 61.0, but remains well above the 50-mark that separates growth from contraction. With this, the composite PMI remains in expansion mode for four straight years. 'India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics," said Pranjul Bhandari, Chief India Economist at HSBC. The survey pointed to a surge in new orders, especially from global clients in Asia, Europe, and the US, with demand for Indian manufactured goods nearing a five-year high. However, despite the upbeat data, firms turned cautious. 'Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July," Bhandari said. Input costs and selling prices rose in July, with businesses reporting higher costs for essential materials such as aluminium, cotton, and food items. These cost pressures are now being passed on to consumers, raising concerns over household budgets and the inflation outlook. While retail inflation eased to a six-year low last month due to cooling food prices, fresh price pressures could limit the Reserve Bank of India's ability to cut interest rates further to support the economy. Though manufacturing remained the key growth driver, the services sector saw some cooling, with its index slipping to 59.8 from 60.4, although it still points to strong activity. Meanwhile, according to a recent Morgan Stanley report, India is on track to become the world's third-largest economy by 2028 and more than double its GDP to $10.6 trillion by 2035. The report also highlighted the pivotal role that Indian states will play in steering this economic transformation. Over the next decade, India is expected to contribute 20% to global growth, becoming a major engine for earnings among multinational corporations, the report said. India has already surpassed Japan to become the world's fourth-largest economy according to IMF data, NITI Aayog CEO BVR Subrahmanyam announced in May 2025. According to the IMF, India's GDP is currently $4.187 trillion, overtaking Japan's $4.186 trillion. Separately, JP Morgan in its latest report said India has emerged as a relatively safe haven among emerging markets (EMs) amid global trade uncertainties. The report highlighted that India is benefiting from a combination of falling inflation, improved system liquidity, and lower government borrowing, which are expected to support economic growth. The report adds that India is expected to post the highest GDP growth among countries in JP Morgan's global universe in 2025. Growth is also being supported by timely demand stimulus and measures that have strengthened urban household balance sheets. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
14 hours ago
- Hans India
PMI composite index on strong note in June
New Delhi: India's private sector showed robust growth in July, fuelled by strong manufacturing and global demand, the HSBC Flash India Composite Purchasing Managers' Index (PMI) showed on headline HSBC Flash India Composite PMI Output Index, compiled by S&P Global, rose to 60.7 in July from 58.4 in June. The Manufacturing PMI index climbed to 59.2 in July from 58.4 in June - its highest level in nearly 17-and-a-half years. The Services PMI was 59.8 in July, down from 60.4 in June. While services activity continued to grow, the pace of expansion softened, according to the note. 'India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics,' said Pranjul Bhandari, chief India economist at HSBC. International orders received by private sector firms in India rose sharply at the start of the second fiscal quarter (Q2 FY26). 'Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July. Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated,' Bhandari Indian companies remained optimistic about output growth over the next 12 months. 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, according to the note. While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March 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 HSBC survey.
