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Informist, Thursday, May 22, 2025

 

--India May flash manufacturing PMI 58.3 vs 58.2 Apr final 
--India May flash services PMI activity index 61.2 vs 58.7 Apr final 
--India May flash composite PMI output index 61.2 vs 59.7 Apr final 

 

NEW DELHI – Boosted by acceleration in the services economy, India's private sector growth moved up a gear in May, with the HSBC flash composite Purchasing Managers' Index rising to 61.2 from 59.7 in April. There were strong influxes of new business suring the month, both from domestic and international markets, which led to quicker expansion in business activity and employment, compiler S&P Global said Thursday. 

 
"India's flash PMI indicate another month of strong economic performance. Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Pranjul Bhandari, chief India economist at HSBC. "Notably, there is a firm pick-up in the employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India's manufacturing and service sectors."

 

The increase was greater for the services sector, with the flash PMI reading rising sharply to 61.2 from 58.7 in April, while the manufacturing index edged up to 58.3 from 58.2. This was as manufacturers indicated the slowest increase in output for three months in May and a slowdown in new orders, while service providers reported the fastest output rise since March 2024 with a pick-up in growth of new orders. 

 

A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below it indicates contraction. The final PMI numbers for May will be released in the first week of June.

 

There was also an improvement in business confidence for the first time since January, according to S&P Global.

 

"Monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities," S&P Global said in its press release. But some firms stated that competition, price pressures and the India-Pakistan conflict negatively impacted their operations, the release added.

 

So far in 2025, the rebound in business sentiment has been centered on the services economy. But going ahead, healthy demand conditions and marketing efforts should continue to support sales and output of Indian firms.  End

 

Reported by Krity Ambey

Edited by Avishek Dutta

 

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