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Time of India
a day ago
- Business
- Time of India
Services activity at three-month high in May
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: India's services activity rose to a three-month high of 58.8 in May, slightly above 58.7 in April, driven by strong demand, new client acquisition and increased staffing capacity, according to a private survey released on Wednesday. The HSBC India Services Business Activity Index was at 60.2 in May Purchasing Managers' Index reading in May was broadly in line with the steady readings from recent months, said Pranjul Bhandari, India chief economist at orders or sales rose at a sharp pace in May due to advertising, healthy demand and repeat orders from existing clients, according to the survey orders also picked up, recording the fastest increase in 19.5 years. The major drivers of this growth were Asia, Europe and North America."Strong international demand continued to fuel services activity, as evidenced by the new export business index's uptick from April," said demand led to an increase in employment. "To keep up with swelling demand, India's service providers heavily increased staff recruitment," noted rate of job creation was the highest in the history of the survey."Almost 16% of panel members reported higher payroll numbers, while 1% indicated a fall," the survey said. On the cost front, companies noted an increase in inflation, which was the highest since the start of the calendar year. Services charges also picked up. "Price pressures continued to intensify with input prices and charged prices both rising last month," said sentiment among service firms improved from April's 23-month low. Survey respondents cited greater staffing capacity, expanded clientele and marketing initiatives as drivers of growth in the year overall private sector activity in India eased marginally in May, with the HSBC India Composite PMI Output Index at 59.3, down from 59.7 in April.
The Print
a day ago
- Business
- The Print
Indian services growth broadly steadied in May amid healthy demand conditions
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction. The seasonally adjusted HSBC India Services PMI Business Activity Index was at 58.8 in May, marginally up from April's 58.7 and signalled another sharp rate of expansion. New Delhi, Jun 4 (PTI) The Indian services growth broadly steadied in May and was underpinned by healthy demand conditions, new client wins and greater staffing capacity, a monthly report said on Wednesday. 'India registered a 58.8 services PMI in May 2025, broadly in line with the steady readings from recent months. Strong international demand continued to fuel services activity, as evidenced by the new export business index's uptick from April,' said Pranjul Bhandari, Chief India Economist at HSBC. As per the survey, new orders rose at a sharp pace largely driven by advertising, demand strength and repeat orders from existing clients. Companies also observed a near-record improvement in international demand for their services during May with faster increases in new export orders recorded in Asia, Europe and North America in particular. 'To keep up with swelling demand, India's service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey,' Bhandari said. Almost 16 per cent of panel members reported higher payroll numbers, while 1 per cent indicated a fall. 'The resulting overall rate of job creation was the strongest in the history of the survey,' the survey said. The increase in workforce numbers, coupled with overtime payments, added to firms' cost burdens. Some companies also cited greater outlays on cooking oil, material and meat. Meanwhile, price gauges showed an intensification of input cost and output charge inflation, with rates of increase edging above their historical averages in each case. There was a recovery in business sentiment during May and the upgraded forecasts stemmed from expectations that greater staffing capacity, expanded clientele and marketing initiatives will support activity growth in the year ahead. Meanwhile, the HSBC India Composite PMI Output Index came in at 59.3 in May, down only marginally from 59.7 in April, signalling a further sharp upturn in aggregate activity. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace. Ongoing improvements in demand for Indian goods and services led to survey-record increases in jobs across the two sectors. Hence, aggregate employment expanded at an unprecedented pace. The HSBC India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services. PTI DRR ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
a day ago
- Business
- The Hindu
Strong export orders drive May services PMI to three-month high of 58.8
India's services sector activity rose marginally to a three-month high in May 2025, driven by strong exports, according to a private sector survey. The HSBC India Services PMI® Business Activity Index for May came in at 58.8, up from 58.7 in April. The reading for May marks the second consecutive month of increased activity. A reading above 50 denotes an expansion in activity, while one below 50 implies a contraction. Also read | India-Pakistan conflict, inflation drag May PMI to three-month low of 57.6 'A key area of strength was exports, with survey participants reporting one of the strongest improvements in international demand in 19-and-a-half years of data collection,' the report said. The report further said that May's survey also revealed a record increase in employment, as services firms continued to adjust their operating capacities in line with ongoing increases in sales. 'To keep up with swelling demand, India's service providers heavily increased staff recruitment,' Pranjul Bhandari, Chief India Economist at HSBC said. 'Indeed, the employment index rose to the highest reading ever recorded by this survey. Meanwhile, price pressures continued to intensify with input prices and charged prices both rising last month.' The uptick in services activity comes at a time when the May PMI for manufacturing fell to a three-month low, dragged down by the India-Pakistan conflict and cost inflation.
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Business Standard
a day ago
- Business
- Business Standard
Services sector growth in May steady on strong exports, shows PMI data
India's dominant services sector maintained its growth in May, helped by strong export demand and record hiring, said a private survey on Wednesday. The HSBC India services purchasing managers' index (PMI), compiled by S&P Global, stood at 58.8 in May, marginally up from 58.7 in April. The index has been above the neutral 50 mark, which separates contraction from expansion, for 46 months straight. 'A key area of strength was exports, with survey participants reporting one of the strongest improvements in international demand in 19-and-a-half years of data collection," said the survey. Growth was helped by healthy demand conditions, new client wins and greater staffing capacity. New orders rose at a sharp pace, largely aligning with those registered from February to April. "Advertising, demand strength and repeat orders from existing clients were some of the reasons panellists gave for the upturn in sales," said the survey. Pranjul Bhandari, chief India economist at HSBC, said that services PMI in May was broadly in line with readings in recent months. Companies observed a near-record improvement in international demand for their services in May. "Over the course of the survey's 19-and-a-half-year history, faster increases in new export orders were only recorded in May and June 2024. When citing sources of growth, firms mentioned Asia, Europe and North America in particular," said the survey. It noted that almost 16 per cent of panellists reported higher payroll numbers, while 1 per cent indicated a fall. The resulting overall rate of job creation was the strongest in the survey's history. The increase in workforce numbers, coupled with overtime payments, added to firms' cost burdens though. Some companies also cited greater outlays on cooking oil, material and meat. "To keep up with swelling demand, India's service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey. Meanwhile, price pressures continued to intensify with input prices and charged prices both rising last month," said Bhandari. The sector's growth comes in the backdrop of manufacturing activity decelerating to a three-month low in May on account of cost pressures, fierce competition and the India-Pakistan conflict. Manufacturing PMI slipped to 57.6 in May from 58.2 in April.
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Business Standard
a day ago
- Business
- Business Standard
Services sector growth steady in May as export demand remains strong: PMI
India's dominant services sector maintained its growth in May, helped by strong export demand and record hiring, said a private survey on Wednesday. The HSBC India services purchasing managers' index (PMI), compiled by S&P Global, stood at 58.8 in May, marginally up from 58.7 in April. The index has been above the neutral 50 mark, which separates contraction from expansion, for 46 months straight. 'A key area of strength was exports, with survey participants reporting one of the strongest improvements in international demand in 19-and-a-half years of data collection," said the survey. Growth was helped by healthy demand conditions, new client wins and greater staffing capacity. New orders rose at a sharp pace, largely aligning with those registered from February to April. "Advertising, demand strength and repeat orders from existing clients were some of the reasons panellists gave for the upturn in sales," said the survey. Pranjul Bhandari, chief India economist at HSBC, said that services PMI in May was broadly in line with readings in recent months. Companies observed a near-record improvement in international demand for their services in May. "Over the course of the survey's 19-and-a-half-year history, faster increases in new export orders were only recorded in May and June 2024. When citing sources of growth, firms mentioned Asia, Europe and North America in particular," said the survey. It noted that almost 16 per cent of panellists reported higher payroll numbers, while 1 per cent indicated a fall. The resulting overall rate of job creation was the strongest in the survey's history. The increase in workforce numbers, coupled with overtime payments, added to firms' cost burdens though. Some companies also cited greater outlays on cooking oil, material and meat. "To keep up with swelling demand, India's service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey. Meanwhile, price pressures continued to intensify with input prices and charged prices both rising last month," said Bhandari. The sector's growth comes in the backdrop of manufacturing activity decelerating to a three-month low in May on account of cost pressures, fierce competition and the India-Pakistan conflict. Manufacturing PMI slipped to 57.6 in May from 58.2 in April.
