Indian Economy Soars; Record Exports, Employment Surge In May, HSBC PMI Reveals

In a remarkable surge, as revealed by the most recent publication of the HSBC Flash Purchasing Manager’s Index (PMI) on Thursday, the Indian economy experienced a historic upswing in exports, coupled with the sharpest rise in employment in nearly 18 years.

Compiled by S&P Global, the PMI data indicated the third-strongest upturn in private sector output since July 2010.

May’s survey brought forth a series of positive indicators. It included a record surge in aggregate exports, the most significant expansion in private sector jobs since 2006, and a notable uptick in business confidence.

However, on the price front, a swifter increase in input costs drove prices charged for Indian goods and services higher.

The survey highlighted, “May saw the headline HSBC Flash India Composite Output Index rise from a final reading of 61.5 in April to 61.7, indicating the third-strongest rate of expansion in close to 14 years.”

During this period, growth surpassed previous levels seen only in July 2023 and March 2024.

Survey participants attributed the latest increase to successful advertising, efficiency gains, robust intakes of new work, and demand strength.

As per IANS, Pranjul Bhandari, Chief India Economist, HSBC, remarked, “The composite PMI ticked up further in May, recording the third strongest reading in close to 14 years, supported by a sharp acceleration in the services sector. Although manufacturing sector growth slowed slightly in May, it continued to surpass that in the service economy.”

Moreover, Bhandari highlighted the strength in new export orders for both sectors, which rose at the fastest pace since the series began in September 2014.

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