India's Robust Business Growth Record Exports Drive PMI Surge

23 May, 2024

India's Robust Business Growth Record Exports Drive PMI Surge

Business activity in India surged in May, buoyed by a flourishing services sector, as per a survey showcasing record-breaking export growth and a remarkable spike in job creation, the most significant in nearly 18 years.

HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, demonstrated a slight uptick to 61.7 this month, maintaining a streak of 34 months above the pivotal 50-level, indicative of expansion rather than contraction.

Pranjul Bhandari, HSBC's Chief India Economist, highlighted the third strongest reading in close to 14 years for the composite PMI in May, accentuated by a notable surge in the service sector.

The flash services PMI index escalated to a four-month pinnacle of 61.4, up from April's 60.8, while the preliminary manufacturing PMI exhibited robust growth albeit slightly subdued compared to the previous month, registering 58.4 versus April's 58.8.

The services industry experienced robust demand, propelled by an uptick in new business at the swiftest pace since January, alongside escalating manufacturing output and new orders, collectively contributing to India's impressive economic growth narrative.