BENGALURU — India’s private sector activity accelerated sharply in June as companies ramped up production to meet surging domestic and international demand, according to a survey released on Monday that showed record export growth and robust hiring.
The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, jumped to a 14-month high of 61.0 this month from 59.3 in May, exceeding a Reuters poll forecast for a modest lift to 59.4.
The 50-mark separates growth from contraction and the latest data showed nearly four years of sustained expansion.
Services gained momentum with the activity index rising to 60.7 from May’s 58.8 – the strongest since August last year – while manufacturing gained pace thanks to robust output. Its PMI climbed to 58.4 in June from 57.6.
“New export orders continued to fuel private sector business activity, especially in manufacturing,” noted Pranjul Bhandari, chief India economist at HSBC.
This expansion was driven by favorable demand as composite new orders grew at the fastest pace in 11 months. Goods producers experienced a more pronounced upturn than services firms.
International sales saw a remarkable rise, with overall new export business at the highest since the data started to be collected in September 2014. However, service providers recorded slower growth in export business compared to last month.
