Economic growth and job creation reached record highs in June, according to PMI survey.

In New Delhi, there's some good news for India's private sector as output growth has picked up again in June. According to the flash PMI data released by HSBC on Friday, business activity has increased at a faster pace for both manufacturing companies and services firms. This has also led to a surge in hiring, with an 18-year high in the employment levels.

The data, compiled by S&P Global, also shows a significant growth in aggregate employment due to strong expansions in total new order intakes and international sales. This has been a result of the momentum gained by new orders in both sectors, with manufacturers experiencing a faster upturn. With growing capacity pressures, firms have had to increase their staffing levels to the highest extent in over 18 years.

The services Purchasing Managers' Index has risen to 60.4 in June, showing a slight increase from 60.2 in May. Similarly, the manufacturing Purchasing Managers' Index has also seen a rise, from 57.5 in May to 58.5 in June. It's worth noting that India's manufacturing activity had experienced a dip in May due to intense heatwaves affecting working hours and volumes.

On the other hand, the services sector had also seen a decline in growth in May due to intense competition and price pressures, along with a severe heatwave. However, things have improved in June as the composite flash PMI has shown an uptick, supported by growth in both the manufacturing and services sectors, with the former recording a faster pace of growth. While new orders have gained momentum for both sectors, there has been a slight slowdown in new export orders, although the rate of expansion is still the second fastest since the beginning of the series.

Maitreyi Das, Global Economist at HSBC, explains that the rise in output can be attributed to the growth in both sectors, with manufacturing experiencing a faster pace. However, input cost inflation has eased slightly in June, but still remains high due to increased labor and material costs. The output price index suggests that manufacturing firms have been able to pass on these higher costs to their customers. Overall, this data paints a positive picture for India's private sector, with growth and hiring on the rise.

[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]