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.
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