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Informist, Monday, Jun. 23, 2025

 

--India Jun flash composite PMI output index 61.0 vs 59.3 May final 

--India Jun flash services PMI activity index 60.7 vs 58.8 May final 

--India Jun flash manufacturing PMI 58.4 vs 57.6 May final 

 

NEW DELHI – India's private sector activity likely expanded at a robust pace in June as the HSBC flash composite Purchasing Managers' Index rose to a 14-month high of 61.0 in June from 59.3 in May, on the back of a "record upturn in new export orders" leading to Indian firms scaling up their output, compiler S&P Global said Monday.

 

"New export orders continued to fuel private sector business activity, especially in manufacturing," Pranjul Bhandari, chief India economist at HSBC, said. "Meanwhile, the combination of robust global demand and rising backlogs prompted manufacturers to increase hiring," Bhandari said.

 

The increase was greater for the services sector, whose flash indicator rose to 60.7 from 58.8 in May, while the manufacturing index edged up to 58.4 from 57.6 in May. 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 June will be released in the first week of July. 

 

The rates of increase in services and manufacturing sectors were at 10-month and two-month highs, respectively. According to panellists, the output was boosted by favourable demand trends, efficiency gains and tech investments. 

 

As per S&P Global, new export orders in June grew at the fastest pace since the series started in September 2014, with companies seeing higher orders from across the world. Monitored companies reported stronger demand from Asia, Europe, the Middle East and the Americas, it said. Responses for flash PMI data are collected in the second half of each month, with the indices calculated from 80-90% of total responses. 

 

The June data also reflected an intensification of capacity pressures among Indian companies. The combination of demand strength and rising backlogs prompted Indian companies to recruit additional staff in June, S&P said. "Employment growth reached a series peak in the manufacturing industry, while service providers signalled a slower upturn in job creation than in May," it said.

 

During June, the private sector also saw a modest rise in input prices owing to higher labour and metal costs. Qualitative data showed that while some firms hiked their fees in response to greater expenses, others refrained from doing so in order to secure new business, the report said. Services companies indicated a slower increase in output prices, while the rate of inflation in the manufacturing industry matched that recorded in May and was, therefore, the highest since November 2013, it added.

 

In terms of sentiment, Indian companies remained "strongly upbeat" towards the year-ahead outlook for business activity. That said, the sentiment slipped to its lowest in just over two years but was broadly aligned with its trend. In terms of sectors, there was mild improvement in confidence among manufacturers, but a downgrade in expectations across service providers.  End

 

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

 

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