India's business activity surges in June on strong demand, record export orders, PMI shows
BENGALURU, June 23 (Reuters) - India's private sector activity accelerated sharply in June as companies ramped up production to meet surging domestic and international demand, according to a survey released on Monday that showed record export growth and robust hiring.
The HSBC Flash India Composite Purchasing Managers' Index (PMI) (INPMCF=ECI), opens new tab, compiled by S&P Global, jumped to a 14-month high of 61.0 this month from 59.3 in May, exceeding a Reuters poll forecast for a modest lift to 59.4.
The 50-mark separates growth from contraction and the latest data showed nearly four years of sustained expansion.
Services gained momentum with the activity index rising to 60.7 from May's 58.8 - the strongest since August last year - while manufacturing gained pace thanks to robust output. Its PMI climbed to 58.4 in June from 57.6.
"New export orders continued to fuel private sector business activity, especially in manufacturing," noted Pranjul Bhandari, chief India economist at HSBC.
This expansion was driven by favorable demand as composite new orders grew at the fastest pace in 11 months. Goods producers experienced a more pronounced upturn than services firms.
International sales saw a remarkable rise, with overall new export business at the highest since the data started to be collected in September 2014. However, service providers recorded slower growth in export business compared to last month.
"The combination of robust global demand and rising backlogs prompted manufacturers to increase hiring," added Bhandari.
Manufacturing employment growth reached a peak not seen since the series began over two decades ago. Service providers also continued adding jobs at a solid pace, albeit slower than in May.
Meanwhile, overall price pressures eased slightly with input cost inflation softening to a 10-month low, allowing firms to limit price hikes to remain competitive. That resulted in a slower rate of output price rises from May's six-month high.
That comes after data showed inflation eased to an over 6-year low in May, allowing the Reserve Bank of India to focus on supporting economic growth and cutting interest rates amid rising uncertainty from U.S. trade tariffs.
Despite positive private sector performance, business confidence dipped to its lowest in just over two years. Manufacturers expressed slightly improved optimism while service providers tempered their expectations for the coming year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
26 minutes ago
- Daily Mail
Oil prices surge as Iran maintains global shipping route threat
Oil prices have surged as Iran maintains its threat to close its global shipping route after Donald Trump blew up the country's nuclear bases. Asian markets traded lower today amid concerns of disruption to energy markets after the US air strikes 'obliterated' Iran's nuclear facilities on Saturday night. The dollar strengthened as traders assessed the weekend's events, with Iran threatening US bases in the Middle East as fears grow of an escalating conflict in the volatile region. Iran is the world's ninth-biggest oil-producing country, with output of about 3.3million barrels per day. It exports just under half of that amount and keeps the rest for domestic consumption. If Tehran decides to retaliate, observers say one of its options would be to close the strategic Strait of Hormuz - which carries 20 per cent of global oil output. Brent crude futures were up $1.52 or 1.97 per cent to $78.53 a barrel as of 6am UK time. US West Texas Intermediate crude advanced $1.51 or 2.04 per cent to $75.35. Both contracts jumped by more than 3 per cent earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains. Economists at MUFG warned of 'high uncertainty of the outcomes and duration of this war', publishing a 'scenario analysis' of an oil price increase of $10 per barrel. 'An oil price shock would create a real negative impact on most Asian economies' as many are big net energy importers, they wrote, reflecting the market's downbeat mood. Tokyo's key Nikkei index was down 0.6 per cent at the break, with Hong Kong losing 0.4 per cent and Shanghai flat. Seoul fell 0.7 per cent and Sydney was 0.8 per cent lower. The dollar's value rose against other currencies but analysts questioned to what extent this would hold out. 'If the increase proves to be just a knee-jerk reaction to what is perceived as short-lived US involvement in the Middle-East conflict, the dollar's downward path is likely to resume,' said Sebastian Boyd, markets live blog strategist at Bloomberg. US Defense Secretary Pete Hegseth said on Sunday that the strikes had 'devastated the Iranian nuclear programme', though some officials cautioned that the extent of the damage was unclear. It comes after Israel launched a bombing campaign against Iran earlier this month. Chris Weston at Pepperstone said Iran would be able to inflict economic damage on the world without taking the 'extreme route' of trying to close the Strait of Hormuz. 'By planting enough belief that they could disrupt this key logistical channel, maritime costs could rise to the point that it would have a significant impact on the supply of crude and gas,' he wrote.
South Wales Argus
28 minutes ago
- South Wales Argus
Celtic Holiday Parks, Pembrokeshire in administration as buyer sought
A buyer is now being sought for Celtic Holiday Parks, which operates luxury sites in the south of the county. The sites at Noble Court Holiday Park, Narberth and Meadow House Holiday Park, Amroth will continue to trade as normal, with employees retained, the administrators have stated. Celtic Holiday Parks was set up in 2003, with Huw Pendleton as the managing director of the family business since that time. Recent years have seen investment of around £6m across Celtic Holiday Parks, which offer a range of top-quality accommodation including static caravans, luxury lodges and glamping options with touring and tenting pitches, as well as leisure facilities. Glorious views from the Meadow House park above Amroth. (Image: Celtic Holiday Parks) In 2020, the company received a six-figure loan from HSBC to fund an additional 54 holiday homes across the sites. This was secured as a part of the Coronavirus Business Interruption Loan Scheme [CBLIS]. In 2022, Mr Pendleton received an award for 'outstanding contribution to the UK tourism industry' and accolades for Celtic Holiday Parks have included 'best caravan and camping parks in Pembrokeshire' and 'luxry accommodation provider of the year South Wales'. Dog-friendly glamping at Noble Court. (Image: Celtic Holiday Parks) A spokesperson for the joint administrators at Grant Thornton UK said: 'Alistair Wardell and Richard Lewis of Grant Thornton UK Advisory & Tax LLP, 3 Callaghan Square, Cardiff CF10 5BT were appointed as joint administrators of Celtic Holiday Parks Limited (the Company) on 27 May 2025. 'The joint administrators are continuing to trade the Company's business whilst a buyer is sought, and the Company's employees have been retained to support this strategy. The indoor pool at Meadow House. (Image: Celtic Holiday Parks) 'We confirm that, unless customers are contacted and advised otherwise, their bookings will go ahead and access to the parks will continue as normal for owners of caravans and lodges. 'Should you be interested in acquiring the Company's business and assets, please contact the joint administrators' team.' The Western Telegraph has contacted Celtic Holiday Parks for a comment.
Rhyl Journal
41 minutes ago
- Rhyl Journal
‘Sluggish' UK business activity picks up as tariff threat eases
The strengthening service industry helped offset a persistent slump in manufacturing in June. The S&P Global flash UK composite purchasing managers' index (PMI) reported a reading of 50.7 in June, up from 50.3 in May. The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting. The volume of new business returned to growth in June, ending a six-month period of contraction, the survey found. This was primarily driven by the service sector – the largest part of the UK's economy, spanning industries including hospitality, entertainment and culture, finance and real estate. A further slight expansion of activity in the sector was contrasted by another drop in production for manufacturers, led by a decline in overseas export orders. Concerns over the impact of Donald Trump's tariffs on US imports were partly behind the slump, despite some businesses saying confidence had improved as a result of the President striking new trade deals with countries including the UK. Chris Williamson, chief business economist at S&P Global Market Intelligence, said the UK economy was in a 'sluggish state' in recent weeks. 'Although business conditions have continued to improve since April's downturn, quelling recession fears, growth of business activity remains disappointingly lacklustre, indicative of second quarter GDP (gross domestic product) rising at only a 0.1% quarterly pace,' he said. 'Business confidence also remains in the doldrums compared to this time last year, losing ground again in June. 'On top of concerns over the impact of recent government policies and worries over global trade protectionism, June's data collection coincided with increased tensions in the Middle East. 'Employment has hence continued to be cut as firms grapple with the combination of higher staffing costs, linked to last autumn's budget, lower demand and subdued confidence.' The survey showed that hiring continued to be squeezed throughout the month, with employment across the private sector decreasing for the ninth month in a row and at a faster pace than May. Businesses surveyed said they had been making cutbacks to their workforce through hiring freezes and redundancies. But Elliott Jordan-Doak, senior UK economist for Pantheon Macroeconomics, pointed out that 'businesses were more optimistic about the future in June than in May, suggesting the economic outlook is improving'. 'Domestic activity is proving more resilient than external demand, consistent with Mr Trump's tariff threats weighing on cross-border trade,' he added. 'All told, the PMI suggests that business confidence is staging a fragile recovery after being battered by tariff threats and tax increases. 'That said, rising geopolitical stress is likely to be added to the growing list of worries facing businesses.'
