In a recent survey by HSBC, it has been reported that business activity in June was further strengthened by gains in the manufacturing and services sectors. The survey highlighted that the pace of job creation reached its highest level in over 18 years.
The headline flash composite Purchasing Managers’ Index (PMI) figure for June stood at 60.9, showing an increase from the revised figure of 60.5 in May. This index measures the month-on-month change in the combined output of India’s manufacturing and service sectors and has been in growth territory for the 35th consecutive month.
Manufacturers experienced a notable improvement in the sector’s health by the end of the first fiscal quarter. The HSBC Flash India Manufacturing PMI rose from 57.5 in May to 58.5 in June, indicating a stronger growth trend. All five sub-components of the index contributed significantly to this growth.
Maitreyi Das, the global economist at HSBC, mentioned that the composite flash PMI for June saw an uptick, supported by growth in both manufacturing and service sectors. While new orders showed growth momentum in both sectors, manufacturers experienced a faster pace of growth. Despite a slight slowdown in new export orders in June, capacity pressures were evident, leading to a significant increase in staffing levels, the highest in over 18 years.
On the exports front, new export orders expanded for the 22nd consecutive month in June, indicating robust performance in this area. Overall, the survey reflects a positive trend in business activity and job creation, driven by gains in the manufacturing and services sectors.
