Employment at 18-year high in June, business activity also up: PMI survey

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The Purchasing Managers’ Index (PMI) for the services sector rose to 60.4 in June, 2024…


New Delhi:

Business activity in India’s manufacturing and services sectors picked up in June, with hiring at an 18-year high. This information comes from the PMI data released by HSBC on Friday. The data also shows that employment increased due to increased international sales and new orders.

Large companies added staff at the fastest pace in 18 years in June, driven by growth in the services and manufacturing sectors.

The Purchasing Managers’ Index (PMI) of the services sector rose to 60.4 in June, 2024, from 60.2 in May, 2024. At the same time, the manufacturing sector PMI rose to 58.5 in June from 57.5 last month.

India’s manufacturing activity fell to a three-month low of 57.5 in May. The reason was the heatwave, which affected the volume. Services sector growth fell to a five-month low in May due to stiff competition and heat.

Maitreyi Das, global economist at HSBC, said the composite PMI rose in June due to growth in the manufacturing and services sectors. New orders increased in both sectors. New export orders have seen a slight slowdown in June. However, this was the second fastest increase in this category.

The panelists who participated in the survey said that the price of inputs decreased in June. However, the cost of labor and raw materials is still high. The survey revealed that manufacturing companies are able to easily transfer higher costs to their customers.



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