India's private sector growth accelerates in May, led by services: HSBC Flash PMI
New Delhi: India's private sector gained momentum in May, led by a sharp acceleration in services activity, as strong demand from both domestic and international markets drove business expansion and hiring, according to the HSBC Flash India PMI survey released Thursday.
Compiled by S&P Global, the survey also signalled a revival in business confidence, the first uptick since January.
The HSBC Flash India Composite Output Index, which captures activity across both manufacturing and services, is estimated to have risen to 61.2 in May from 59.7 in April, indicating robust expansion. A reading above 50 denotes growth, and the index has now remained in expansion territory for over three years.
'The increase was the most pronounced since April 2024,' the report said.
While manufacturing showed a slight slowdown in growth, the services sector posted its fastest output rise in 14 months, the survey noted.
Based on responses from roughly 400 manufacturers and 400 service providers, the flash PMI offers an early estimate ahead of final data, which will be released early next month.
The HSBC Flash India Manufacturing PMI edged up to 58.3 in May from 58.2 in April, signalling continued strength, albeit at a stable pace. In contrast, the Services PMI Business Activity Index surged to 61.2 from 58.7, while the Manufacturing Output Index dipped marginally to 61.4 from April's 61.9.
'While goods producers indicated the slowest increase in output in three months, service providers reported the fastest rise since March 2024,' the survey said.
'At the composite level, the latest upturn was the quickest in just over a year. Surveyed firms attributed the momentum to buoyant demand, investments in technology, and capacity expansion.'
India's ambition to become a $10 trillion economy over the next decade is being propelled by growth in manufacturing, particularly in sectors such as semiconductors, electronics, electric vehicles, renewables, and defence. To support this goal, the government has ramped up capital investment in infrastructure, job creation, and industrial development.
"India's flash PMI indicates 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 pickup in employment, especially in the services sector, suggesting healthy job creation is accompanying the expansion of India's manufacturing and services sectors,' she added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Wall Street Week Ahead: US stocks edge toward records with inflation data, policy progress in focus
The U.S. stock rebound has driven key indexes to the cusp of record levels, with fresh economic data and trade and fiscal policy developments set to test whether equities will get an extra push higher in the near term. A monthly U.S. inflation report headlines the events for markets in the coming week. Equities have bounced back from a steep fall in April, sparked by concerns about the economic fallout from President Donald Trump's tariff plans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Accounting Automation Software Might Help You To Earn More Accounting Automation Software | Search ads Undo Stocks hit a speed bump on Thursday as a public rift between Trump and Tesla chief Elon Musk sent shares of the electric vehicle maker down 14%. The benchmark S&P 500 ended on Thursday just over 3% off its record closing high from February. It closed down 0.5% on the day as Tesla's tumble offset news of progress in tariff talks between Trump and Chinese President Xi Jinping. "I'd still say it's a cautious tone" in the market, said Jim Baird, chief investment officer with Plante Moran Financial Advisors. Despite a "recovery off the lows, I still think it's a market that is looking for greater clarity." Some uncertainty stems from how the U.S. economy is weathering the shifting trade backdrop. Trump has eased back on some of the harshest tariffs since his April 2 "Liberation Day" announcement sent stocks tumbling, but investors are waiting to see how other levies may be rippling through the economy. Live Events The consumer price index report for May, due on Wednesday, could give insight into the tariff impact at a time investors are wary of any flare-ups in inflation. "Consumers are feeling the impact of higher prices and if there are indications that near-term inflation could re-accelerate, that is going to put further pressure on discretionary spending and ultimately could lead to a more pronounced slowdown in growth," Baird said. The CPI report will be one of the last key pieces of data before the Federal Reserve 's June 17-18 meeting. The U.S. central bank is widely expected to hold interest rates steady at that meeting, but traders are pricing in about two 25-basis point cuts by the end of the year. "If we see inflationary data that defies what people are concerned about based on this tariff talk and it comes in cooler, then that could also be a catalyst to at least test those old highs," said Jay Woods, chief global strategist at Freedom Capital Markets. For the year, the S&P 500 is up about 1%. But the index has stormed back over 19% since April 8, at the depth of the stock market's plunge on concerns over the tariff fallout. Investors also are grappling with uncertainty over a sweeping tax-cut and spending bill under review in the U.S. Senate. Wall Street is monitoring how much the legislation could stimulate economic growth , but also inflate the country's debt burden as widening fiscal deficits have become a central concern for markets in recent weeks. "As debt increases, it has a greater negative impact on growth," said Kristina Hooper, chief market strategist at Man Group. The legislation also appeared to be the source of a severe rift between Trump and Musk, who had been his strong ally. Musk called the bill at the heart of Trump's agenda a "disgusting abomination," while Trump said he was "disappointed" by the billionaire's public opposition. Trade talks also remain at the forefront of markets, with a 90-day pause on a wide array of Trump's tariffs set to end on July 8. "When it comes to policy from Washington, D.C., there are still big question marks," said Bob Doll, chief investment office at Crossmark Global Investments.
Economic Times
an hour ago
- Economic Times
Wall Street Week Ahead: US stocks edge toward records with inflation data, policy progress in focus
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The U.S. stock rebound has driven key indexes to the cusp of record levels, with fresh economic data and trade and fiscal policy developments set to test whether equities will get an extra push higher in the near term.A monthly U.S. inflation report headlines the events for markets in the coming week. Equities have bounced back from a steep fall in April, sparked by concerns about the economic fallout from President Donald Trump's tariff hit a speed bump on Thursday as a public rift between Trump and Tesla chief Elon Musk sent shares of the electric vehicle maker down 14%.The benchmark S&P 500 ended on Thursday just over 3% off its record closing high from February. It closed down 0.5% on the day as Tesla's tumble offset news of progress in tariff talks between Trump and Chinese President Xi Jinping. "I'd still say it's a cautious tone" in the market, said Jim Baird, chief investment officer with Plante Moran Financial Advisors. Despite a "recovery off the lows, I still think it's a market that is looking for greater clarity."Some uncertainty stems from how the U.S. economy is weathering the shifting trade backdrop. Trump has eased back on some of the harshest tariffs since his April 2 "Liberation Day" announcement sent stocks tumbling, but investors are waiting to see how other levies may be rippling through the consumer price index report for May, due on Wednesday, could give insight into the tariff impact at a time investors are wary of any flare-ups in inflation."Consumers are feeling the impact of higher prices and if there are indications that near-term inflation could re-accelerate, that is going to put further pressure on discretionary spending and ultimately could lead to a more pronounced slowdown in growth," Baird said. The CPI report will be one of the last key pieces of data before the Federal Reserve 's June 17-18 U.S. central bank is widely expected to hold interest rates steady at that meeting, but traders are pricing in about two 25-basis point cuts by the end of the year."If we see inflationary data that defies what people are concerned about based on this tariff talk and it comes in cooler, then that could also be a catalyst to at least test those old highs," said Jay Woods, chief global strategist at Freedom Capital Markets. For the year, the S&P 500 is up about 1%. But the index has stormed back over 19% since April 8, at the depth of the stock market's plunge on concerns over the tariff also are grappling with uncertainty over a sweeping tax-cut and spending bill under review in the U.S. Senate. Wall Street is monitoring how much the legislation could stimulate economic growth , but also inflate the country's debt burden as widening fiscal deficits have become a central concern for markets in recent weeks."As debt increases, it has a greater negative impact on growth," said Kristina Hooper, chief market strategist at Man Group. The legislation also appeared to be the source of a severe rift between Trump and Musk, who had been his strong ally. Musk called the bill at the heart of Trump's agenda a "disgusting abomination," while Trump said he was "disappointed" by the billionaire's public talks also remain at the forefront of markets, with a 90-day pause on a wide array of Trump's tariffs set to end on July 8. "When it comes to policy from Washington, D.C., there are still big question marks," said Bob Doll, chief investment office at Crossmark Global Investments.
NDTV
an hour ago
- NDTV
US, China To Hold Trade Talks In London Tomorrow, Trump Says "Should Go Well"
Washington: Three of President Donald Trump's top aides will face their Chinese counterparts in London on Monday for talks to resolve a trade dispute between the world's two largest economies that has kept global markets on edge. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in the talks, said Trump, who announced the talks in a post on his Truth Social platform but provided no more details. It was not immediately clear who would represent China. The Chinese embassy in Washington did not immediately respond to a request for comment. The White House did not immediately respond to a request for more details. "The meeting should go very well," Trump wrote. The scheduling of the meeting comes a day after Trump spoke to Chinese President Xi Jinping in a rare leader-to-leader call amid weeks of brewing trade tensions and a battle over critical minerals. Trump and Xi agreed to visit one another and asked their staffs to hold talks in the meantime. Both countries are under pressure to relieve tensions, with the global economy under pressure over Chinese control over the rare earth mineral exports of which it is the dominant producer and investors more broadly anxious about Trump's wider effort to impose tariffs on goods from most US trading partners. China, meanwhile, has seen its own supply of key US imports like chip-design software and nuclear plant parts curtailed. The countries struck a 90-day deal on May 12 in Geneva to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. That preliminary deal sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 stock index, which at its lowest point in early April was down nearly 18% after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2% below its record high from mid-February. The final third of that rally followed the US-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. Beijing sees mineral exports as a source of leverage - halting those exports could put domestic political pressure on the Republican U.S. president if economic growth sags because companies cannot make mineral-powered products. In recent years, the United States has identified China as its top geopolitical rival and the only country in the world able to challenge the U.S. economically and militarily.
