India's private sector growth touches 13-month high in May, buoyed by services: HSBC
India's
private sector activity
picked up pace sharply in May, reaching its fastest rate of expansion in over a year, lifted by a surge in the services sector, as per the
HSBC Flash PMI
data released on Wednesday.
The HSBC India Composite PMI Output Index climbed to 61.2 in May from 59.7 in April, the strongest growth seen since April 2024.
This expansion was fueled by service providers, which saw the fastest rise in output in 14 months.
The HSBC Flash India Services PMI Business Activity Index rose sharply to 61.2 in May from 58.7 in April, fuelled by solid demand, strong inflows of new business, and renewed confidence among firms.
"The increase was the most pronounced since April 2024. There was a mild loss of growth momentum in the manufacturing industry but service providers reported the fastest rise in output in 14 months," HSBC said, quoted by ANI.
While the services sector surged, the manufacturing industry showed mixed signals. The manufacturing PMI output index dipped slightly to 61.4 in May from 61.9 in April. However, the overall manufacturing PMI, which considers output, new orders, employment, delivery times, and inventories, rose to 58.3 from 58.2, indicating a healthy sector despite the mild slowdown in output.
May's upturn in private sector performance marked the strongest monthly expansion since April last year as businesses across the services sector saw faster expansion in business activity and employment.
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Firms reported solid inflows of news businesses including both from domestic and those overseas.
Confidence among businesses also rebounded for the first time since January, which firms attributed to strong demand, investments in technology, and increased production capacity.
However, rising costs remained a concern. The survey indicated that both input costs and selling prices rose at the quickest rate since late 2024, reflecting a fresh build-up in inflationary pressures.
Manufacturing sector reported the slowest growth of the last three months, while the services sector dominated the momentum, propelling the overall private sector to a 13-month high in activity.
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