India Private Sector Growth Strongest In 13 Months

(RTTNews) - India's private sector activity expanded at the quickest pace in just over a year, spurred by strong foreign and domestic demand, flash data compiled by S&P Global showed on Thursday.

The HSBC composite output index rose to 61.2 in April from 59.7 in March. A score above 50.0 indicates expansion.

There was a mild loss of growth momentum in the manufacturing industry, but service providers reported the fastest rise in output in 14 months, the survey said.

The manufacturing PMI rose marginally to 58.3 in May from 58.2 in the previous month, indicating consistency with a sharp improvement.

Services activity showed a more pronounced upturn in May, with the services PMI rising to 61.2 in May from 58.7 in April.

New orders received by Indian private sector companies grew at the quickest pace in over a year, led by buoyant demand, investment in technology, and expanded capacities.

International demand for Indian goods and services also expanded strongly as export growth was the fastest in a year.

There was reduced pressure on the operating capacities as outstanding business volumes rose at the slowest pace since September 2024.

Job creation strengthened in May, and growth also hit a fresh series record. However, this resulted in more operating expenses as input price inflation rose to a five-month high along with higher raw material costs. As a result, selling price inflation accelerated to the highest in six months.

Looking ahead, private sector companies remained positive about output expectations, as healthy demand conditions and marketing efforts should continue to support sales and output over the course of the coming 12 months.