India’s private sector saw its fastest growth in 13 months during May, driven mainly by a sharp rise in the services industry. This growth encouraged companies to hire more workers, according to a private survey.
HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, increased to 61.2 in May. This is up from a revised 59.7 in April.
The PMI measures monthly changes in output from both manufacturing and services. A reading above 50 signals growth, while below 50 indicates contraction. The index has remained above 50 for 46 months in a row, showing sustained expansion.
The May increase was the strongest since April 2024. Service providers reported their fastest output growth in 14 months. Companies credited the rise to strong demand, investments in technology, and expanded production capacity.
Pranjul Bhandari, HSBC’s chief India economist, said the May flash PMI points to continued strong economic performance. Manufacturing firms showed robust growth in production and new orders, even though the pace slowed slightly from April’s levels.
He also highlighted a notable rise in employment, especially in the service sector. This suggests that job creation is keeping pace with the growth in both manufacturing and services.
The final manufacturing PMI for May will be published on June 2, followed by the services and composite PMI figures on June 4.
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