Private Sector Hiring At 18-Year High, Growth In Service And Manufacturing Drives Flash PMI To 60.9

Private Sector Hiring At 18-Year High, Growth In Service And Manufacturing Drives Flash PMI To 60.9

The final reading of the S&P Global-compiled HSBC flash India Composite Purchasing Managers' Index (PMI) increased to 60.9 in June from 60.5 in the previous month.

Vikrant DurgaleUpdated: Saturday, June 22, 2024, 12:24 PM IST
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According to a S&P Global industry survey released on Friday, the private sector created jobs in June at the fastest rate in the last 18 years as a result of businesses expanding their capacities in response to strong sales and increased business activity.

The final reading of the S&P Global-compiled HSBC flash India Composite Purchasing Managers' Index (PMI) increased to 60.9 in June from 60.5 in the previous month.

Manufacturing sector

The growth of the manufacturing sector accelerated more sharply. While the services PMI business activity index increased slightly to 60.4 in June from 60.2 in May, the flash manufacturing PMI increased from 57.5 in May to 58.5 in June.

A PMI reading above 50 denotes sector expansion, while one below 50 denotes contraction. It is based on a survey that was given to about 400 service providers and 400 manufacturers.

Export's Data

In terms of exports, new export orders increased in June for the 22nd consecutive month and stayed strong, albeit at a slightly slower rate than the growth that was recorded last month.

Due to the strong demand, businesses were forced to increase staffing, resulting in the fastest growth in employment generation since April 2006. Compared to the services sector, manufacturing saw a greater increase in job creation.

Manufacturers bought more inputs for use in production processes as a result of the strong demand trends, as the rate of growth in buying levels was higher than in May and more rapid.

Additionally, a slight improvement in vendor performance indicates that suppliers were able to deliver materials on time even with the increase in purchase quantities.

According to Maitreyi Das, Global Economist at HSBC, "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."

Both sectors' growth momentum increased with new orders, with manufacturers experiencing a faster upturn, das added

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