India’s Private Sector Sees Robust Growth In June: HSBC

In a promising rebound, India’s private sector showed renewed strength in June, driven by accelerated business activity across manufacturing and services, coupled with a notable surge in hiring, according to the latest flash Purchasing Managers’ Index (PMI) data released by HSBC on Friday.

The services sector PMI rose to 60.4 in June from 60.2 in May, underscoring robust growth, while the manufacturing PMI climbed to 58.5 from 57.5 over the same period.

This recovery comes after a slight dip in May, attributed to heatwave disruptions that affected production volumes.

The upturn in both sectors was accompanied by substantial increases in employment levels, reaching an 18-year high.

Companies across the board reported heightened demand, both domestically and internationally, fueling expansions in new orders and exports.

This strong performance led firms to ramp up staffing levels significantly, responding to capacity pressures and signaling confidence in future growth prospects.

Commenting on the data, Maitreyi Das, Global Economist at HSBC, noted, “The composite flash PMI ticked up in June, supported by rises in both the manufacturing and service sectors, with the former recording a faster pace of growth. New orders gained momentum, especially among manufacturers, although export orders moderated slightly from previous highs.”

Despite signs of inflationary pressures easing marginally in June, input costs remained elevated, driven by higher labor and material expenses.

However, manufacturing firms managed to pass on some of these costs to customers, as indicated by the output price index, highlighting their resilience amid cost challenges.

The latest PMI figures suggest a robust start to the second quarter for India’s economy, with both manufacturing and services sectors poised for continued expansion, bolstered by strong domestic demand and improving global conditions.

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