Latest news with #Bhandari
News18
11 hours ago
- Business
- News18
India's Private Sector Growth Stays Strong In July, Manufacturing PMI Hits Over 17-Year High
Last Updated: July's HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, stands at 60.7, which is well above the 50-level that separates growth from contraction. India's private sector continued to expand at a solid pace in July, backed by strong performance in manufacturing and firm overseas demand, according to the latest HSBC Flash India Composite PMI released by S&P Global. Manufacturing remained the key growth driver. The HSBC Flash India Manufacturing PMI rose to 59.2 — the highest level in over 17 years — from 58.4 in June. The HSBC Flash India Composite Purchasing Managers' Index, compiled by S&P Global, stood at 60.7 in July. Though it is slightly lower than June's 61.0, but remains well above the 50-mark that separates growth from contraction. With this, the composite PMI remains in expansion mode for four straight years. 'India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics," said Pranjul Bhandari, Chief India Economist at HSBC. The survey pointed to a surge in new orders, especially from global clients in Asia, Europe, and the US, with demand for Indian manufactured goods nearing a five-year high. However, despite the upbeat data, firms turned cautious. 'Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July," Bhandari said. Input costs and selling prices rose in July, with businesses reporting higher costs for essential materials such as aluminium, cotton, and food items. These cost pressures are now being passed on to consumers, raising concerns over household budgets and the inflation outlook. While retail inflation eased to a six-year low last month due to cooling food prices, fresh price pressures could limit the Reserve Bank of India's ability to cut interest rates further to support the economy. Though manufacturing remained the key growth driver, the services sector saw some cooling, with its index slipping to 59.8 from 60.4, although it still points to strong activity. Meanwhile, according to a recent Morgan Stanley report, India is on track to become the world's third-largest economy by 2028 and more than double its GDP to $10.6 trillion by 2035. The report also highlighted the pivotal role that Indian states will play in steering this economic transformation. Over the next decade, India is expected to contribute 20% to global growth, becoming a major engine for earnings among multinational corporations, the report said. India has already surpassed Japan to become the world's fourth-largest economy according to IMF data, NITI Aayog CEO BVR Subrahmanyam announced in May 2025. According to the IMF, India's GDP is currently $4.187 trillion, overtaking Japan's $4.186 trillion. Separately, JP Morgan in its latest report said India has emerged as a relatively safe haven among emerging markets (EMs) amid global trade uncertainties. The report highlighted that India is benefiting from a combination of falling inflation, improved system liquidity, and lower government borrowing, which are expected to support economic growth. The report adds that India is expected to post the highest GDP growth among countries in JP Morgan's global universe in 2025. Growth is also being supported by timely demand stimulus and measures that have strengthened urban household balance sheets. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
16 hours ago
- Business
- Hans India
PMI composite index on strong note in June
New Delhi: India's private sector showed robust growth in July, fuelled by strong manufacturing and global demand, the HSBC Flash India Composite Purchasing Managers' Index (PMI) showed on headline HSBC Flash India Composite PMI Output Index, compiled by S&P Global, rose to 60.7 in July from 58.4 in June. The Manufacturing PMI index climbed to 59.2 in July from 58.4 in June - its highest level in nearly 17-and-a-half years. The Services PMI was 59.8 in July, down from 60.4 in June. While services activity continued to grow, the pace of expansion softened, according to the note. 'India's flash composite PMI remained healthy in July at 60.7. The strong performance was bolstered by growth in total sales, export orders, and output levels. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics,' said Pranjul Bhandari, chief India economist at HSBC. International orders received by private sector firms in India rose sharply at the start of the second fiscal quarter (Q2 FY26). 'Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July. Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated,' Bhandari Indian companies remained optimistic about output growth over the next 12 months. There is a firm pick-up in employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India's manufacturing and service sectors, according to the note. While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March the composite level, the latest upturn was the quickest in just over a year. Monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities, said the HSBC survey.
Time of India
a day ago
- Business
- Time of India
Manufacturing PMI climbs to 17-year high of 59.2 in July
New Delhi: India's private sector activity remained strong in July, maintaining a reading above the 60 mark for the second consecutive month, with the manufacturing sector recording its highest level in 17 years, growing faster than services, according to a private survey. The HSBC Flash India Composite Output Index was at 60.7 in July, slightly lower than 61 in June. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices. Explore courses from Top Institutes in Please select course: Select a Course Category MCA Degree Data Analytics Public Policy Finance MBA Management Operations Management Healthcare Digital Marketing Artificial Intelligence Others Design Thinking Cybersecurity Data Science healthcare others Technology Leadership Data Science Product Management Project Management CXO PGDM Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details "India's flash composite PMI remained healthy in July. The strong performance was bolstered by growth in total sales, export orders, and output levels," said Pranjul Bhandari, chief India economist at HSBC. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Manufacturing PMI climbed to 59.2, its highest level in around 17 years, "indicative of a robust improvement in the health of the manufacturing industry", the survey mentioned. Goods producers experienced a faster rise in output compared to service providers. Similarly, regarding output, manufacturers saw a sharper increase in new orders than the service sector, with growth accelerating in the former but easing in the latter. Live Events Overall, sales expanded at their quickest pace in a year. "Indian manufacturers led the way, recording faster rates of expansion than services for all of the three metrics - sales, output and export orders," said Bhandari. International orders surged to their strongest level since the series began, the survey noted, driven by demand from across the world, including Asia, Europe and US. "Growth of new export orders accelerated in the service economy, whilst it slowed among goods producers," it added. However, job creation slowed in July, marking the weakest employment growth in 15 months, with a notable slowdown in the services sector. Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July, said Bhandari. According to the firms surveyed, prices rose in aluminium, cotton, foodstuffs (cooking oil, egg, meat, vegetables), rubber, steel and transportation. Service firms faced a steeper rise in input costs compared to manufacturers. "Charge inflation likewise intensified in July, as private sector companies sought to share additional cost burdens with their clients by lifting selling prices," it added. Business sentiment, meanwhile, dropped to its lowest level since March 2023, though firms remained optimistic about output growth in the next 12 months. "Finally, business confidence fell to its lowest mark since March 2023, while employment growth moderated to its weakest pace in 15 months," said Bhandari.
Business Times
a day ago
- Business
- Business Times
India's economic activity sends mixed signals in July, PMIs show
[MUMBAI] India's manufacturing activity strengthened in July, while the services sector showed signs of easing, according to a flash survey by HSBC Holdings. The manufacturing purchasing managers' index rose to 59.2 in July from 58.4 in June, marking its highest level in nearly 17.5 years, according to HSBC. In contrast, the services purchasing managers' index edged down to 59.8 from 60.4 last month, slightly weighing on overall activity. As a result, the composite index eased to 60.7 compared with 61.0 in the previous month. The indexes reflect business confidence in the economy and are based on preliminary surveys. The data could get revised when final PMI figures are released next month. A reading above 50 indicates expansion in economic activity, while a print below that indicates contraction. The composite PMI remained healthy, bolstered by growth in total sales, export orders, and output levels, said Pranjul Bhandari, chief India economist at HSBC, in a statement on Thursday (Jul 24). However, inflationary pressures 'continue to heat up as both input costs and output charges rose in July,' Bhandari said. Business confidence fell to its lowest mark since March 2023, while employment growth moderated to its weakest pace in 15 months, Bhandari said. The mixed economic signals follow an unexpected 50-basis-point cut in the policy interest rate by the Reserve Bank of India last month. While a favourable monsoon has improved the outlook for agriculture, uncertainty surrounding ongoing trade negotiations with the US continues to weigh on India's export performance. 'New orders increased to a greater extent in the manufacturing industry than in the service economy, as growth quickened in the former whilst it eased in the latter,' HSBC said. BLOOMBERG
Mint
a day ago
- Business
- Mint
Buoyant global demand continues to support India's economic output, says S&P Global
Operating conditions across India's private sector continued to improve in July, with a sharp expansion in total sales, export orders and output levels, S&P Global said on Thursday, citing its latest HSBC flash purchasing managers index (PMI) data. At 60.7 in July, the seasonally adjusted composite output index, which measures the monthly change in the combined output of India's manufacturing and service sectors – was little-changed from June's final print of 61, signalling another month of high growth, S&P said. The headline figure remained well above its long-run average of 54.8, the credit rating and intelligence provider said. Goods producers registered a faster increase in output than service providers as the pace of expansion picked up to the strongest since April 2024. There was a softer upturn in services activity during July, though growth remained sharp by historical standards, S&P said. Its manufacturing purchase managers index, which combines data on new orders, output, jobs, supplier delivery times and inventories, rose from 58.4 in June to 59.2 in July, its highest reading in almost 18 years and indicative of a robust improvement in the health of the manufacturing industry. The manufacturing PMI output index stood at 62.5 in July, compared to 62.1 in June. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. As was the case for output, new orders increased to a greater extent in the manufacturing industry than in the service economy, as growth quickened in the former and eased in the latter, the S&P said. At the composite level, overall sales expanded at the fastest pace in exactly a year. The strong performance in the composite index was bolstered by growth in total sales, export orders, and output levels, the statement quoted Pranjul Bhandari, chief India economist at HSBC, as saying. 'Indian manufacturers led the way, recording faster rates of expansion than services for all of the three aforementioned metrics. Meanwhile, inflationary pressures continue to heat up as both input costs and output charges rose in July," he said. Bhandari also said business confidence fell to its lowest since March 2023, while employment growth moderated to its weakest pace in 15 months. S&P said July data highlighted a pick-up in cost pressures across the private sector. According to monitored firms, aluminium, cotton, food items like cooking oil, egg, meat and vegetables as well as rubber, steel and transportation saw prices increase. The rate of inflation was solid, but below its long-run average. Services companies recorded a faster increase in input prices than their manufacturing counterparts, S&P said. The RBI estimates India's economy will grow at 6.5% in the current financial year. The June quarter is expected to have seen 6.5% growth, followed by a 6.7% expansion in the September quarter, 6.6% in the December quarter and 6.3% in the March quarter. Risks are evenly balanced, according to the RBI.
