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The HSBC recently released the Flash India Composite Purchasing Manager’s Index (PMI) data. According to it the Indian economy saw a record increase in exports and the sharpest upturn in employment in over 18 years in May.
The S&P Global’s PMI data shows the third-strongest upturn in private sector output since July 2010. It report indicates the manufacturing sector continued to remain the driver of growth in output and sales. However, it was the service sector which was responsible for the most recent uptick in the expansion of the overall economy.
This month’s HSBC flash India Composite Purchasing Managers’ Index (PMI), stood at 61.7, up from 61.5 in April. According to the survey report, this indicates the third-strongest rate of expansion in close to 14 years.
Furthermore, the flash service PMI Index rose to 61.4 this month, up from 60.8 in April. While the preliminary PMI showed strong growth despite a slight dip from 58.8 last month to 58.4.
The report states that alongside an expanding manufacturing sector with rising output and new orders the service sector also grew. In fact the service sector grew at its fastest pace since January.
Then the overall exports grew at its fastest pace since September 2014, marking the second time exports growth reached new heights. The increase in exports was driven by rising international demand.
It states that the current upbeat outlook will boost business confidence in the coming 12 months. This will happen particularly in the service sector, where it reached an all time high since May 2013. It also notes that optimism among manufacturers was the highest in over 9 years.
The positive sentiments being accompanied by an improvement in employment creation. Job creation happened across the private sector which reached its highest point since September 2006. Furthermore, the service sector added jobs at the fastest pace in 21 months. On the price front, an increase in input costs has pushed the prices charges for goods and services a little higher this month. However, not all increase in input cost was transferred to clients.