India’s Economic Activity Expands In June, Flash PMIs Show
The indexes are based on preliminary survey results and show business confidence.
(Bloomberg) -- India’s economic activity continued to expand in June, driven by strength in both services and manufacturing sectors, according to a flash survey by HSBC Holdings Plc.
The services purchasing managers’ index climbed to 60.4 from 60.2 last month, while the manufacturing purchasing managers’ index rose to 58.5 from 57.5 in May. That drove the composite PMI to 60.9 from 60.5 the previous month.
The indexes are based on preliminary survey results and show business confidence. The final data will be released next month. A reading above 50 indicates expansion compared with the previous month, while a print below that indicates contraction in activity.
“New orders gained growth momentum for both sectors, with a faster upturn among manufacturers,” Pranjul Bhandari, chief India economist at HSBC, said in a statement.
India is set to grow more than 7% in the current fiscal year, making it the fastest-expanding major economy in the world. The rapid expansion has given room to the central bank to keep interest rate higher for longer as it aims to bring down inflation to its 4% target. The Reserve Bank of India left its benchmark rate unchanged for an eighth straight policy meeting held earlier this month.
The output price index suggests manufacturing firms were able to pass on higher costs to customers, HSBC said. Business confidence remained positive in June as private sector firms expect positive demand momentum to sustain, it added.
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