According to the latest data from S&P Global, India's composite PMI for May increased to 61.7, marking the index's 34th consecutive month above the 50-level that separates growth from contraction. The services sector saw a significant boost, with the PMI reaching a four-month high of 61.4, while manufacturing slightly decreased to 58.4 from 58.8 in April.
The report by HSBC's Chief India Economist, Pranjul Bhandari, highlighted that May's composite PMI recorded the third strongest reading in close to 14 years. Despite a slowdown in new orders and production in the manufacturing sector, output growth continued to surpass that in the service economy. Notably, both sectors saw a rise in new export orders at the fastest pace since September 2014, indicating strong international demand.
The survey also reported the steepest expansion in private sector jobs since 2006, with services seeing the fastest job additions in 21 months. Business confidence for the coming year was high, especially in the services sector, reaching its strongest level since May 2013. Manufacturers also expressed optimism at the highest level in over nine years, contributing to the positive sentiment in the economy.