Economic activity expanded at the fastest pace in 14 months in June: PMI survey
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.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
a day ago
- Indian Express
‘Gujarat's recent policy initiatives closely aligned with India's national vision for services sector'
Written by Jay Jani Gujarat's recent policy initiatives are closely aligned with India's national vision for the services sector, said Mona Khandhar, Principal Secretary of the Department of Science and Technology (DST), at a round table recently organised by the Gujarat Department of Science and Technology (DST) and HSBC at the GIFT City to promote Global Capability Centres (GCC) Policy 2025-30. Around 27 Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and senior executives of 27 leading national and international companies participated in the event. Addressing the gathering on Thursday, Khandhar said, 'In just the past year, the Gujarat government has implemented over five key policies to promote innovation, investment, and institutional development.' She also underlined Gujarat's strengths, including 'a robust legal-administrative framework and gender-inclusive business environment, making it one of the most trusted and investment-friendly destinations in India'. Opening the discussion, Mr Avasar Vipathi, CEO of HSBC and Head of GIFT City Branch, reiterated HSBC's commitment to supporting investment and innovation in Gujarat. Avantha Vamshra, Managing Director and Head of Markets and Securities Services, HSBC India, praised the state's fast-paced development and emphasised the crucial role GCCs could play in the next growth phase. She noted that Gujarat's ecosystem offers structural support for Research & Development (R&D), talent development, and sustainable expansion. During the session, officials from GIFT City and the DST gave detailed presentations on the government's key industry incentives and the policy framework supporting GCC growth. Industry participants expressed enthusiasm about expanding their operations in Gujarat and praised the 'clarity and pro-investor approach' of the GCC policy. Many remarked that the CaPEX (Capital Expenditure) and OpEX (Operational Expenditure) support offered would significantly aid long-term organisational planning and scalability. (Jay Jani is an intern with The Indian Express)
Time of India
3 days ago
- Time of India
Services activity at 10-mth high as new orders surge
NEW DELHI: Activity in the country's service sector rose to a 10-month high in June as new orders increased and overseas demand strengthened, leading to job creation in the sector, a survey showed on Thursday. The HSBC India Services PMI business activity index, based on a single question asking how the level of business activity compares with the situation in the month before, rose from 58.8 in May to 60.4 in June. Companies linked the upturn to positive demand trends and ongoing improvements in sales. The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 service sector companies. Overseas demand particularly improved from the Asian, West Asian and US markets, according to survey participants. "New export orders also expanded, albeit at a softer pace. Margins improved as the rise in input costs was below that seen for output charges. Service providers remained optimistic about future growth, though their confidence faded a tad," said Pranjul Bhandari, chief India economist at HSBC. Data indicated that expansions in output and new orders remained broad-based during June. Finance and insurance topped the growth rankings. For both measures, the slowest expansions were in real estate and business services. The survey showed that ongoing expansion of service sector had a positive impact on jobs. Employment rose for 37th consecutive month in June, with the rate of job growth outpacing its long-run average, despite slowing from May's record. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Time of India
Services activity rises to 10-month high
New Delhi: India's services sector activity rose to a 10-month high of 60.4 in June, fuelled by rising domestic orders and growth in international sales, according to a private survey released Thursday. The HSBC India Services Business Activity Index was 58.8 in May and 60.5 in June 2024. Services companies ended the first quarter of this fiscal year on a strong footing, with an average Purchasing Managers' Index (PMI) reading of 59.3. However, it was lower than 60.5 recorded in the same quarter last year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Baca Undo Companies attributed the rise to positive demand trends and continued sales improvement. "Services PMI business activity index was up to a 10-month high, led by a sharp rise in new domestic orders," said Pranjul Bhandari, chief India economist at HSBC. Live Events While services companies remained optimistic about the future growth, with 18% forecasting expansion, the share of upbeat firms was the lowest since mid-2022. "Service providers remained optimistic about future growth, though their confidence faded a tad," said Bhandari. June saw the fastest growth in new orders since August 2024. "Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business," the survey said. Across sectors, finance & insurance recorded the highest growth. The slowest expansion, for both output and new orders, were in real estate and business services. International demand also improved, especially from Asia, the Middle East and the US, according to survey respondents. "New export orders also expanded, albeit at a softer pace," noted Bhandari. Growth in the services sector boosted hiring, with employment rising for the 37th month in June. Input cost inflation fell to a 10-month low in June. Where expenses increased, panellists cited greater staff salaries and wages. "Several service providers noted that they had maintained sufficient pricing power to pass on higher costs to clients," the survey said. Although charge inflation eased from May, it remained above the long-term trend. Among sectors, cost pressures were strongest in the consumer services category. In output charges, the fastest upturn was noted in finance & insurance.
