Daijiworld Media Network – New Delhi
New Delhi, May 23: India’s private sector witnessed robust growth in May, with the HSBC Flash India Composite Output Index rising sharply to 61.2, marking a 13-month high, according to data released on Thursday. The index had stood at 59.7 in April.
The Composite Output Index, which evaluates month-on-month changes in both the manufacturing and services sectors, signalled strong economic momentum, fuelled by a booming service economy and steady manufacturing performance.
While the manufacturing PMI held steady at 58.3, nearly unchanged from April’s 58.2, it was the services sector that drove overall expansion. HSBC noted that service providers recorded the fastest rise in output in 14 months, reflecting a resurgence in consumer and corporate demand.
“There was a mild loss of growth momentum in the manufacturing industry, but service providers made up for it with robust activity,” the HSBC Flash PMI report said.
Strong domestic and international demand led to faster increases in both new business orders and employment. Firms across sectors ramped up hiring — with the services segment, in particular, seeing record-high employment growth since the series began in December 2005.
“This month’s PMI data signals another period of solid economic performance,” said Pranjul Bhandari, Chief India Economist at HSBC. “While manufacturing output slightly cooled off from last month, services gained significant traction, and the employment figures are very encouraging.”
Another highlight of the May data was a revival in business confidence, marking its first uptick since January. Companies cited buoyant market demand, technology investments, and capacity expansion as key drivers of optimism.
“Underlying data indicated that ongoing job creation enabled companies to stay on top of their workloads in May,” the report added. Full- and part-time employees were hired across various roles on both permanent and temporary bases.
May’s Composite PMI score of 61.2 places India firmly in expansionary territory (anything above 50 signals growth), underscoring resilience in the economy amid global uncertainties.
With robust service sector performance and strong job creation, experts suggest the country is on a steady path to sustained economic growth, providing a positive outlook for the coming quarters.