Latest news with #FlashPMI
New Indian Express
11 hours ago
- Business
- New Indian Express
Exports push flash manufacturing PMI to 60.7 in Jul, but services dip
MUMBAI: Driven by manufacturing on the back of robust export orders as the tariff deadline loomed, business activity accelerated in July with the headline flash manufacturing index rising to 60.7 from 58.4 in June. While services PMI had touched a 10-month high of 60.4 in June on sharp upturn in new businesses, manufacturing index for that month was on a 14-month high at 58.4 driven by export orders. The jump is significant as it came despite business confidence falling to its lowest mark since March 2023, and employment growth moderated to its weakest pace in 15 months. Flash PMI signals expansion as manufacturing activity picks up climbing to 60.7 while the flash services PMI eased to 59.8 in July, according to the HSBC's flash purchasing managers' index or PMI compiled by S&P Global, Thursday. The PMI is an economic indicator that measures overall business activity across manufacturing and services tracking production, new orders, employment, supplier performance, and inventories, based on responses from purchasing managers. A reading above 50 signals growth, while below 50 indicates contraction, and a score of 50 points to no change in activity. Pranjul Bhandari, the chief economist at HSBC India, said the flash composite PMI remained healthy in July at 60.7 and this strong performance was bolstered by growth in total sales, export orders, and output levels. Manufacturers led the way, recording faster rates of expansion than their peers in the services space, she added. Meanwhile, inflationary pressures continue to heat up as both input cost and output charges rose in the reporting month.' The rise in PMI is significant as it comes in spite of the fact business confidence fell to its lowest mark since March 2023, while employment growth moderated to its weakest pace in 15 months," she said. Also, services sector eased to 59.8 in July down from 60.4 in June. While services activity continued to grow, the pace of expansion softened, though it remained sharp by historical standards, she said. However, companies are optimistic about output growth over the next 12 months even though the overall sentiment slipped to its lowest level since March 2023, weighed down by concerns over price pressures and rising competition for new work. Survey participants reported demand growth from across Asia, Europe and the US. While growth in new export orders accelerated in the services sector, it slowed among goods producers. Employment rose at the weakest pace in 15 months, marking a notable slowdown in hiring overall and especially in the services sapce. The seasonally adjusted index for the services economy fell by nearly four points, reflecting this deceleration. July data indicated a rise in input cost pressures across the private sector. Surveyed companies reported higher prices for aluminium, cotton, food items such as cooking oil, eggs, meat, and vegetables, as well as rubber, steel, and transportation. While the overall rate of input inflation was solid, it remained below the long-term average. Service providers saw a sharper increase in input costs than manufacturers. Selling price inflation also accelerated as companies passed on increased costs to customers. The rate of output charge inflation exceeded the long-run trend, with stronger price hikes observed in both manufacturing and services.
Economic Times
4 days ago
- Business
- Economic Times
Rupee to track dollar recovery, bond market focused on rate cut bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee will likely take cues from how far the dollar's nascent recovery extends this week, while bonds will move based on expectations of interest rate cuts by the local central rupee closed at 86.1475 on Friday, down 0.4% on the week. It is expected to hover between 85.80 and 86.70 in the near-term with a slight weakening bias, according to falling for five straight months, the dollar index is up 1.5% in July so far, as strong U.S. economic data and indications that tariffs have started pushing up prices lowered rate-cut expectations in the world's largest from Federal Reserve Chair Jerome Powell on Tuesday will be in focus, in light of the persistent criticism he has faced from U.S. President Donald Trump for not lowering interest odds of a U.S. rate cut in September are around 53%, per CME's FedWatch ongoing trade negotiations with the U.S. will also be in focus alongside quarterly earnings reports from local companies, which have a bearing on foreign portfolio flows into equities. Forex advisory firm IFA Global recommended that importers cover near-term liabilities around 86, while suggesting exporters hedge around India's 10-year benchmark 6.33% 2035 bond yield, which settled last week at 6.3058%, is expected to move in a range of 6.28% to 6.33%. The yield could rise as New Delhi sells 300 billion rupees ($3.5 billion) of the benchmark on will be on the potential for rate cuts after India's retail inflation slipped to a more than six-year low in June. An expected further drop to a record low in July is prompting calls for another rate cut."With recent high frequency data disappointing and indicating the possibility of growth in India slowing down makes sense to be involved in local currency bonds also on the potential for more support from the RBI further down the line," said Giulia Pellegrini, lead portfolio manager emerging market debt at participants would also track whether the Reserve Bank of India turns more aggressive in withdrawing liquidity after drawing out 2 trillion rupees from the banking system on EVENTS: ** India July HSBC manufacturing, services and composite Flash PMI - July 24, Thursday (10:30 a.m. IST) U.S. ** June existing home sales - July 23, Wednesday (7:30 p.m. IST) ** Initial weekly jobless claims for week to July 14 - July 24, Thursday (6:00 p.m. IST)** July S&P Global manufacturing, services and composite Flash PMI - July 24, Thursday (7:15 p.m. IST)** June new home sales units - June 25, Wednesday (7:30 p.m. IST)** June durable goods - June 26, Thursday (7:30 p.m. IST)($1 = 86.1180 Indian rupees)
Time of India
4 days ago
- Business
- Time of India
Rupee to track dollar recovery, bond market focused on rate cut bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee will likely take cues from how far the dollar's nascent recovery extends this week, while bonds will move based on expectations of interest rate cuts by the local central rupee closed at 86.1475 on Friday, down 0.4% on the week. It is expected to hover between 85.80 and 86.70 in the near-term with a slight weakening bias, according to falling for five straight months, the dollar index is up 1.5% in July so far, as strong U.S. economic data and indications that tariffs have started pushing up prices lowered rate-cut expectations in the world's largest from Federal Reserve Chair Jerome Powell on Tuesday will be in focus, in light of the persistent criticism he has faced from U.S. President Donald Trump for not lowering interest odds of a U.S. rate cut in September are around 53%, per CME's FedWatch ongoing trade negotiations with the U.S. will also be in focus alongside quarterly earnings reports from local companies, which have a bearing on foreign portfolio flows into equities. Forex advisory firm IFA Global recommended that importers cover near-term liabilities around 86, while suggesting exporters hedge around India's 10-year benchmark 6.33% 2035 bond yield, which settled last week at 6.3058%, is expected to move in a range of 6.28% to 6.33%. The yield could rise as New Delhi sells 300 billion rupees ($3.5 billion) of the benchmark on will be on the potential for rate cuts after India's retail inflation slipped to a more than six-year low in June. An expected further drop to a record low in July is prompting calls for another rate cut."With recent high frequency data disappointing and indicating the possibility of growth in India slowing down makes sense to be involved in local currency bonds also on the potential for more support from the RBI further down the line," said Giulia Pellegrini, lead portfolio manager emerging market debt at participants would also track whether the Reserve Bank of India turns more aggressive in withdrawing liquidity after drawing out 2 trillion rupees from the banking system on EVENTS: ** India July HSBC manufacturing, services and composite Flash PMI - July 24, Thursday (10:30 a.m. IST) U.S. ** June existing home sales - July 23, Wednesday (7:30 p.m. IST) ** Initial weekly jobless claims for week to July 14 - July 24, Thursday (6:00 p.m. IST)** July S&P Global manufacturing, services and composite Flash PMI - July 24, Thursday (7:15 p.m. IST)** June new home sales units - June 25, Wednesday (7:30 p.m. IST)** June durable goods - June 26, Thursday (7:30 p.m. IST)($1 = 86.1180 Indian rupees)
New Indian Express
23-06-2025
- 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.
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Business Standard
23-06-2025
- Business
- Business Standard
Private sector business activity rises to 14-month high in June: PMI data
India's private sector output grew at its fastest pace in 14 months in June, helped by faster increases in total new business intakes and international sales, showed a private survey on Monday. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 61, up from a downward revised figure of 59.3 in May. The index, which measures monthly change in the combined output of manufacturing and services, has been above the 50-mark that separates growth from contraction for the 47th consecutive month. 'Manufacturers led the upturn in business activity, though growth also picked up pace in the service economy. Rates of increase were at two- and ten-month highs, respectively. According to panellists, output was boosted by favourable demand trends, efficiency gains and tech investment,' said the survey. The HSBC Flash India Manufacturing PMI rose to 58.4 in June from 57.6 in May. The latest figure – a weighted average of new orders, output, employment, suppliers' delivery times and stocks of purchases indices –signalled the best improvement in operating conditions since April 2024. '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, chief India economist at HSBC, 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. 'Meanwhile, the 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,' added Bhandari. Flash PMI records 75 per cent to 85 per cent of the 800 responses from services and manufacturing firms each month. The final manufacturing PMI figure for June will be released on July 1, while the services and composite PMI figures will be released on July 3. 'June data showed an intensification of capacity pressures among Indian 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,' the survey read. On the employment front, the survey noted that the combination of demand strength and rising backlogs prompted Indian 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. The employment growth reached a series peak in the manufacturing industry, while service providers signalled a slower upturn in job creation than in May.
