Latest news with #PranjulBhandari
United News of India
2 days ago
- Business
- United News of India
Manufacturing sector is booming with steady services growth in India: Report
New Delhi, July 26 (UNI) The HSBC Flash India Purchasing Managers Index (PMI) report showed strong domestic economic conditions fueled by vibrant manufacturing. This report highlighted the headline composite PMI Output index, which rose to 60.7 per cent in July. While the manufacturing PMI also witnessed a surge and rose to 59.2 per cent. The manufacturing sector showed a major increase in buying levels among good producers, which was widely supported by timely supplier deliveries. On the other hand, the stock of finished goods witnessed a marginal fall as firms have mostly used the warehoused goods to meet the standards of rising demand. The HSBC report also pointed out a surge in charge inflation as private sector companies raised the selling prices to share the cost burden with clients. A strong inflation rate is observed in both the manufacturing and service sectors. The report also noted that international orders placed with private sector companies witnessed a surge in July. Moreover, major contributing economies were Asia, Europe, and the US. Pranjul Bhandari (chief India economist, HSBC), pointing out the strong composite output index numbers in July, mentioned some factors, including growth in total sales, export orders, and output levels. Bhandari also stated that Indian manufacturers are leading the way with steady service sector growth. The HSBC Flash India PMI report is compiled by S&P Global (Standard & Poor's) by conducting rigorous surveys of manufacturers and service providers. This data is then used for creating PMI indices, which are considered the key economic health indicators of the manufacturing and service sectors. UNI SAS PRS
News18
3 days ago
- Business
- 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
4 days ago
- Business
- 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.
Time of India
4 days ago
- Business
- Time of India
Manufacturing PMI climbs to 17-year high of 59.2 in July
New Delhi: India's private sector activity remained strong in July, maintaining a reading above the 60 mark for the second consecutive month, with the manufacturing sector recording its highest level in 17 years, growing faster than services, according to a private survey. The HSBC Flash India Composite Output Index was at 60.7 in July, slightly lower than 61 in June. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices. Explore courses from Top Institutes in Please select course: Select a Course Category MCA Degree Data Analytics Public Policy Finance MBA Management Operations Management Healthcare Digital Marketing Artificial Intelligence Others Design Thinking Cybersecurity Data Science healthcare others Technology Leadership Data Science Product Management Project Management CXO PGDM Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details "India's flash composite PMI remained healthy in July. The strong performance was bolstered by growth in total sales, export orders, and output levels," said Pranjul Bhandari, chief India economist at HSBC. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Manufacturing PMI climbed to 59.2, its highest level in around 17 years, "indicative of a robust improvement in the health of the manufacturing industry", the survey mentioned. Goods producers experienced a faster rise in output compared to service providers. Similarly, regarding output, manufacturers saw a sharper increase in new orders than the service sector, with growth accelerating in the former but easing in the latter. Live Events Overall, sales expanded at their quickest pace in a year. "Indian manufacturers led the way, recording faster rates of expansion than services for all of the three metrics - sales, output and export orders," said Bhandari. International orders surged to their strongest level since the series began, the survey noted, driven by demand from across the world, including Asia, Europe and US. "Growth of new export orders accelerated in the service economy, whilst it slowed among goods producers," it added. However, job creation slowed in July, marking the weakest employment growth in 15 months, with a notable slowdown in the services sector. Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July, said Bhandari. According to the firms surveyed, prices rose in aluminium, cotton, foodstuffs (cooking oil, egg, meat, vegetables), rubber, steel and transportation. Service firms faced a steeper rise in input costs compared to manufacturers. "Charge inflation likewise intensified in July, as private sector companies sought to share additional cost burdens with their clients by lifting selling prices," it added. Business sentiment, meanwhile, dropped to its lowest level since March 2023, though firms remained optimistic about output growth in the next 12 months. "Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated to its weakest pace in 15 months," said Bhandari.
Yahoo
4 days ago
- Business
- Yahoo
India's private sector sees robust growth despite inflation and job concerns, PMI shows
By Anant Chandak BENGALURU (Reuters) -Growth in India's private sector remained robust in July, supported by strong manufacturing and international demand, but rising inflation and weaker employment generation tempered the expansion, a business survey showed. Moderation in overall growth came alongside a drop in business confidence to an over two-year low. Firms expressed concerns over rising price pressures and heightened competition while uncertainty surrounding trade negotiations with the U.S. also likely weighed on sentiment. July's HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, registered 60.7, a slight dip from June's final reading of 61.0. The figure remained well above the 50-level that separates growth from contraction and marked sustained expansion for the past four years. "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," noted Pranjul Bhandari, chief India economist at HSBC. Manufacturing was the engine of growth this month with its flash PMI climbing to 59.2, the highest reading in over 17 years, from 58.4. In contrast, the services activity index fell to 59.8 from 60.4, indicating a softer albeit historically sharp rate of expansion. Overall new orders expanded at the fastest pace in a year, bolstered by robust demand from overseas clients in Asia, Europe, and the U.S.. New orders for manufactured goods, in particular, rose to a near five-year high. Bhandari noted that despite the strong performance, there were signs of caution. "Business confidence fell to its lowest mark since March 2023, while employment growth moderated to its weakest pace in 15 months," she said. A recent Reuters poll of independent economists highlighted growing concerns about joblessness and underemployment in the world's fastest-growing major economy, which has failed to create enough well-paying jobs for millions of youth entering the workforce each year. According to recently introduced official government data the unemployment rate remained steady at 5.6% in June but the way this is measured is inaccurate, economists say. Meanwhile, inflationary pressures intensified with both input costs and output charges rising in July. Firms reported higher prices for materials such as aluminium, cotton, and foodstuffs and passed these higher expenses on to clients. Retail inflation eased to an over six-year low last month due to lower food prices but any acceleration in inflation could dampen expectations for more interest rate cuts from the Reserve Bank of India.
