India’s business sectors pick pace in June, job creation at 18-yr high

India’s business activity in the manufacturing and services sectors grew faster in June 2024 compared to May while job creation scaled an 18-year high, reveals the HSBC Flash India PMI survey that was released on Friday.

The growth in services and manufacturing sectors at the end of the first quarter of this fiscal year signals a robust FY25 ahead, according to the survey, which was conducted by S&P Global. Accompanying the growth in manufacturing and services sectors, India’s new export orders in June this year saw expansion, too, for the 22nd consecutive month, although the pace slowed down marginally after the record surge seen in May.

Of the two sectors, manufacturing registered a comparatively faster rate of growth. According to the survey report, the Purchasing Managers’ Index (PMI) for the manufacturing sector increased to 58.5 in June, compared to 57.5 in May 2024. The PMI for the services sector surged to 60.9 in June from 60.5 in the previous month. The sustained growth in both the sectors was supported by steady expansion in manufacturing orders and output as well as business benefits in services.

In turn the streak of growth triggered employment and job creation was at an 18-year high, rising at the swiftest pace since April 2006. The rate of job creation was higher in the manufacturing sector compared to the services sector. 

Meanwhile, price increase has lessened. While input cost inflation eased slightly in June, the output price index shows consumers had to shoulder the manufacturers’ burden of higher costs.