PMI data compiled by S&P Global indicated the third-strongest growth in private sector output since July 2010. While the manufacturing industry continued to lead growth in both sales and output, it was the service economy that was responsible for the latest uptick. The overall economy is expanding.
Other positive developments highlighted in the May survey include record growth in total exports, the fastest expansion in private sector jobs since 2000 and a significant improvement in business confidence. On the price front, the rapid increase in input costs has pushed up the prices charged for Indian goods and services further.
“May saw the headline HSBC Flash India Composite* output index – a seasonally adjusted index that measures month-on-month changes in the combined output of India's manufacturing and services sectors – rise to 61.7 from the last reading of 61.5 in April , which indicated the third-strongest rate of expansion in the last 14 years,” the survey said.
During this period, growth was strong only in July 2023 and March 2024. Explaining the latest increase, survey participants cited successful advertising, efficiency gains, strong new job openings and the strength of demand, the report said.
HSBC Chief India Economist Pranjul Bhandari said, "The overall PMI accelerated further in May, recording the third-strongest reading in nearly 14 years, supported by a sharp pick-up in the services sector. However, manufacturing sector growth slowed in May. I was a little slow." It went ahead of that in the service economy.”
Additionally, the latest data showed a strong surge in new export orders for bot sectors, which grew at the fastest pace since the series began in September 2014, he said.
Other positive developments highlighted in the May survey include record growth in total exports, the fastest expansion in private sector jobs since 2000 and a significant improvement in business confidence. On the price front, the rapid increase in input costs has pushed up the prices charged for Indian goods and services further.
“May saw the headline HSBC Flash India Composite* output index – a seasonally adjusted index that measures month-on-month changes in the combined output of India's manufacturing and services sectors – rise to 61.7 from the last reading of 61.5 in April , which indicated the third-strongest rate of expansion in the last 14 years,” the survey said.
During this period, growth was strong only in July 2023 and March 2024. Explaining the latest increase, survey participants cited successful advertising, efficiency gains, strong new job openings and the strength of demand, the report said.
HSBC Chief India Economist Pranjul Bhandari said, "The overall PMI accelerated further in May, recording the third-strongest reading in nearly 14 years, supported by a sharp pick-up in the services sector. However, manufacturing sector growth slowed in May. I was a little slow." It went ahead of that in the service economy.”
Additionally, the latest data showed a strong surge in new export orders for bot sectors, which grew at the fastest pace since the series began in September 2014, he said.
