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Hans India
24-06-2025
- Business
- Hans India
Economic activity surges to a 14-month high
New Delhi: Indianeconomic activity has surged to a 14-month high in June as companies scaled up output in response to faster increases in total new business intakes and a record upturn in export orders, according to the HSBC flash PMI data released on Monday. The HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors, climbed to a 14-month high of 61.0 in June. Rising from 59.3 in May, the latest reading was consistent with a sharp rate of expansion that was well above the long-run series 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. With pending workloads continuing to accumulate, firms remained in hiring inflation softened as input costs rose at the slowest pace in ten months, the HSBC report states. According to panellists, output was boosted by favourable demand trends, efficiency gains and tech HSBC Flash India Manufacturing PMI – a weighted average of the New Orders, Output, Employment, Suppliers' Delivery Times and Stocks of Purchases indices – rose from 57.6 in May to 58.4 in June, signalling 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 the composite level, the rate of expansion was the strongest seen since July 2024, the report states. When explaining June's rise, survey participants remarked on healthy demand conditions and successful Bhandari, Chief India Economist at HSBC, said: 'India's flash PMI indicated strong growth in June. 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,' Bhandari added.
Economic Times
23-06-2025
- Business
- Economic Times
Private sector activity rises to 14-month high in June
India's private sector experienced a significant surge in June, reaching a 14-month high, fueled by robust manufacturing and services sectors. Favorable demand, efficiency gains, and tech investments drove output. New export orders boosted activity, particularly in manufacturing, with strong demand from Asia, Europe, and the Americas. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India's private sector activity surged to a 14-month high in June, supported by both the manufacturing and services sectors, according to a private survey released on demand trends, efficiency gains, and investment in technology supported output, survey respondents HSBC Flash India Composite Output Index rose to 61 in June from 59.3 in May. The Composite Purchasing Managers' Index (PMI) is a weighted average of comparable manufacturing and services in the manufacturing sector climbed to a 14-month high of 58.4 in June, while the services sector expanded to a 10-month high of 60.7."India's flash PMI indicated strong growth in June. New export orders continued to fuel private sector business activity, especially in manufacturing," said Pranjul Bhandari, Chief India Economist at sector firms reported strong growth in export orders, particularly among manufacturers, although international sales at services firms expanded at a slower pace. Companies noted strong demand from Asia, Europe, the Middle East, and the demand and a rise in outstanding business volumes encouraged Indian firms to hire staff."The combination of robust global demand and rising backlogs prompted manufacturers to increase hiring," said full- and part-time employees were hired across permanent and temporary roles, according to anecdotal evidence. Employment growth reached an all-time high in the manufacturing industry, the survey said."Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June," noted the cost front, firms reported a marginal increase in input prices in June, driven by higher labour and metal (copper, iron, and steel) the rate of inflation eased to a 10-month low, the survey noted. "Qualitative data showed that while some firms hiked their fees in response to greater expenses, others refrained from doing so in order to secure new business," it said that both input and output prices continued to rise in manufacturing and services firms, but the pace of increase showed signs of ahead, positive business sentiment fell to its lowest level in over two years, according to the survey. There was a mild improvement in manufacturers' confidence compared to a downgrade in expectations among service providers, the survey concluded.
Time of India
23-06-2025
- Business
- Time of India
Private sector activity rises to 14-month high in June
New Delhi: India's private sector activity surged to a 14-month high in June, supported by both the manufacturing and services sectors, according to a private survey released on Monday. Favourable demand trends, efficiency gains, and investment in technology supported output, survey respondents noted. The HSBC Flash India Composite Output Index rose to 61 in June from 59.3 in May. The Composite Purchasing Managers' Index (PMI) is a weighted average of comparable manufacturing and services indices. Growth in the manufacturing sector climbed to a 14-month high of 58.4 in June, while the services sector expanded to a 10-month high of 60.7. "India's flash PMI indicated strong growth in June. New export orders continued to fuel private sector business activity, especially in manufacturing," said Pranjul Bhandari, Chief India Economist at HSBC. Live Events Private sector firms reported strong growth in export orders, particularly among manufacturers, although international sales at services firms expanded at a slower pace. Companies noted strong demand from Asia, Europe, the Middle East, and the Americas. Robust demand and a rise in outstanding business volumes encouraged Indian firms to hire staff. "The combination of robust global demand and rising backlogs prompted manufacturers to increase hiring," said Bhandari. Both full- and part-time employees were hired across permanent and temporary roles, according to anecdotal evidence. Employment growth reached an all-time high in the manufacturing industry, the survey said. "Employment growth is also healthy in the services sector despite slightly weakening on a sequential basis from May to June," noted Bhandari. On the cost front, firms reported a marginal increase in input prices in June, driven by higher labour and metal (copper, iron, and steel) costs. However, the rate of inflation eased to a 10-month low, the survey noted. "Qualitative data showed that while some firms hiked their fees in response to greater expenses, others refrained from doing so in order to secure new business," it added. Bhandari said that both input and output prices continued to rise in manufacturing and services firms, but the pace of increase showed signs of softening. Looking ahead, positive business sentiment fell to its lowest level in over two years, according to the survey. There was a mild improvement in manufacturers' confidence compared to a downgrade in expectations among service providers, the survey concluded.
The Hindu
23-06-2025
- Business
- The Hindu
Economic activity expanded at the fastest pace in 14 months in June: PMI survey
An index measuring India's combined manufacturing and services performance rose to a 14-month high in June, driven by strong export demand. 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.'
India Gazette
23-06-2025
- Business
- India Gazette
HSBC Flash India composite output Index climbs to 14-month high
Mumbai (Maharashtra) [India], June 23 (ANI): The HSBC Flash India Composite Output Index, which tracks month-on-month changes in combined output from manufacturing and services, rose to 61.0 in June from 59.3 in May - the highest in 14 months and well above the long-term average. Indian businesses recorded a sharp rise in export orders in June, marking the strongest upturn since records began in 2014, according to the latest HSBC Flash Purchasing Managers' Index (PMI) data. The data shows strong momentum in both manufacturing and services, with companies scaling up output to meet rising domestic and international demand. Pranjul Bhandari, Chief India Economist at HSBC, said, 'India's flash PMI indicated strong growth in June. 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.' Bhandari added, '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.' Manufacturing led the growth, with the Manufacturing PMI Output Index climbing to 61.5 in June from 60.3 in May. The overall Manufacturing PMI rose to 58.4, its best level since April 2024, signalling improved operating conditions. Service sector activity also picked up, supported by rising demand, efficiency improvements, and technology investments. Companies saw a significant increase in new business, particularly in exports. Survey respondents noted strong international demand from regions including Asia, Europe, the Middle East, and the Americas. While manufacturing exports surged, service sector exports also rose, though at a slower pace. As backlogs of work continued to grow - now for the 42nd consecutive month - businesses responded by hiring more staff, including both permanent and temporary workers. Employment in manufacturing hit a record high, while hiring in services was slower than in May. Despite higher demand, cost pressures eased, with input prices rising at their slowest pace in ten months. Companies cited modest increases in labour and metal prices, but the overall rate of cost inflation remained below the long-term average. Selling prices for goods and services continued to rise, but at a slower pace than in May, as many firms avoided passing on costs to attract more business. Looking ahead, Indian firms remain optimistic about the future, although overall business confidence dipped slightly to a two-year low. Manufacturers showed slightly stronger optimism, while sentiment among service providers was more cautious. (ANI)
