Team Blitz India
NEW DELHI: Propelled by gains in manufacturing and services sectors, business activity in June got further strengthened, said a survey by HSBC on June 21. According to the survey carried out by the global banker, the headline flash composite Purchasing Managers’ Index (PMI) figure rose to 60.9 in June.
The index, which measures the month-on-month change in the combined output of India’s manufacturing and service sectors, was inside growth territory for the 35th consecutive month. As has been the case since February, growth was stronger at goods producers than at service providers.
“Manufacturers saw a quicker improvement in the overall health of the sector at the end of the first fiscal quarter, with the HSBC Flash India Manufacturing PMI – a single figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases – rising from 57.5 in May to 58.5 in June. There were stronger contributions from all of its five sub-components,” the survey said.
Maitreyi Das, global economist at HSBC, said that the composite flash PMI ticked up in June, supported by rises in both the manufacturing and service sectors, with the former recording a faster pace of growth.
“New orders gained growth momentum for both sectors, with a faster upturn among manufacturers. Meanwhile, new export orders slowed slightly in June, although the rate of expansion was the second fastest since the beginning of the series. As a result, capacity pressures became evident in June, leading firms to increase their staffing levels to the greatest extent in over 18 years,” she added.
