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Economic Times
22-05-2025
- Business
- Economic Times
Private sector activity in May at 13-month high
India's private sector activity soared to a 13-month high in May, reaching 61.2, fueled by a rapid expansion in the services sector. The Composite PMI reflects strong economic performance, driven by buoyant demand and investment. Despite some firms citing price pressures and geopolitical tensions, new orders and exports experienced robust growth. Tired of too many ads? Remove Ads India's private sector activity surged to a 13-month high of 61.2 in May from 59.7 in April, driven by an acceleration in services, according to a private survey released on HSBC Flash India Composite Output Index was 60.5 in May 2024. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices. "India's flash PMI indicates another month of strong economic performance," said Pranjul Bhandari, chief India economist at increase in service sector output was the fastest in 14 months, while the manufacturing sector recorded the slowest increase in three months. Survey respondents attributed growth at the composite level to buoyant demand, investment in technology and expanded capacities. However, some firms noted that price pressures, competition and the India-Pakistan conflict negatively impacted April 2, the US announced reciprocal tariffs on various countries, imposing a 26% tariff on Indian imports. While US announced a 90-day pause until July 9, a baseline tariff of 10% remains in manufacturing sector was negatively hit across Asia due to trade uncertainties, domestic-oriented economies like India were outliers. New orders also picked up, with support from international demand. The private sector recorded the fastest increase in exports in a year, said the survey."Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Bhandari.
Economic Times
02-05-2025
- Business
- Economic Times
Cranking it up: Factory activity hits a 10-month high in April
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India's manufacturing sector logged its highest growth in 10 months, inching up to 58.2 in April from 58.1 in March, supported by strong sales and production, according to a private survey published HSBC Purchasing Managers Index (PMI), compiled by S&P Global, was 58.8 in April 2024. "Manufacturing output growth strengthened to a ten-month high on robust orders," said Pranjul Bhandari, India chief economist at increase in output was the highest since June 2024, with consumer goods makers recording the fastest increase, the report orders rose to a 14-year high, excluding January, at the start of this fiscal year. Survey respondents cited demand growth from Africa, Asia, Europe, the Middle East and the Americas. "The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements," said April 2, the US announced a reciprocal tariff on various countries, imposing 26% on Indian imports. Although President Donald Trump announced a 90-day pause until July 9, a baseline tariff of 10% remains in effect. While manufacturing PMI was negatively affected across Asia due to trade uncertainties, India emerged as an outlier. "Export-oriented economies in the region are bearing the brunt of the tariff hit, with new export orders in China, Korea having fallen sharply into contractionary territory," noted Nomura. In contrast, domestic-oriented economies like India and Philippines have shown resilience, it added. Manufacturing activity in China fell to 49 in April from 50.5 in March. Other countries such as Indonesia, Malaysia, South Korea, and Thailand also recorded a decline. Cost pressures also intensified in India. Input prices rose at the fastest rate in four months in April, with firms citing higher building maintenance, labour, leather, paper, rubber, steel and transportation to the survey, anecdotal evidence suggests that companies transferred cost increases to clients leading output prices to their highest level in 11.5 years. "Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices, of which the index jumped to the highest level since October 2013," Bhandari noted. To meet the output demand, manufacturers expanded their workforce. "Exactly 9% of survey participants took on extra workers, with a combination of permanent and temporary contracts reportedly being offered," the report mentioned.
