India’s economic activity hits 14-month high in June on strong manufacturing, services growth: HSBC Flash Purchasing Managers' Index (PMI)
- IBEF
- June 24, 2025
India’s economic activity surged in June, with the HSBC Flash Composite Output Index climbing to a 14-month high of 61, indicating a sharp and above-trend expansion in both manufacturing and services. A reading above 50 signals growth, and the index has remained in expansion territory for over three years. According to Standard and Poor's (S&P) Global, which compiled the survey, manufacturers led the upturn, supported by rising demand, efficient operations, and technology investments. The Flash India Manufacturing Purchasing Managers' Index (PMI) rose to 58.4 in June from 57.6 in May, while the output index reached 61.5, its highest since April 2024. In the services sector, the activity index increased to 60.7 from 58.8 in May, reflecting robust momentum.
The report highlighted a significant rise in new export orders, especially in manufacturing, supported by stronger demand from Asia, Europe, West Asia, and the United States (US). Employment expanded in both sectors, though hiring in services slowed slightly on a sequential basis. Despite continued increases in input and output costs, the rate of inflation showed signs of moderation. Chief India Economist at HSBC, Mr. Pranjul Bhandari, noted that the combination of strong global demand and rising backlogs prompted manufacturers to hire more. Although business sentiment remained positive for the year ahead, it dipped to its lowest level in over two years, with manufacturers showing slightly more optimism than service providers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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