PMI services growth hits ten-month low in September: Survey
India's dominant services sector growth remained robust but slackened to a 10-month low in September as demand slowed, an HSBC survey said on Friday.
Business activity in June got further strengthened amid the gains in manufacturing and services sectors, a survey by HSBC said on Friday.
The survey also noted that the pace of job creation was at its strongest in over 18 years.
As per the survey, the headline flash composite Purchasing Managers’ Index (PMI) figure rose to 60.9 in June, compared to a downward revised figure of 60.5 in May.
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“Manufacturers saw a quicker improvement in the overall health of the sector at the end of the first fiscal quarter, with the HSBC Flash India Manufacturing PMI – a single figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases – rising from 57.5 in May to 58.5 in June. There were stronger contributions from all of its five sub-components,” the survey said.
The PMI index measures the month-on-month change in the combined output of India’s manufacturing and service sectors, and was inside growth territory for the 35th consecutive month.
As has been the case since February, growth was stronger at goods producers than at service providers.
Further on the exports front, new export orders expanded for a 22nd consecutive month in June and remained robust, though the pace eased slightly after record growth last month.
The robust demand prompted companies to hire more people, with overall employment generation rising at the fastest pace since April 2006. Job creation among manufacturers was higher than in the services sector.
Fuelled by positive demand trends, manufacturers also purchased additional inputs for use in production processes as the rate of growth in buying levels was sharp and quicker than in May.
Also, despite the upturn in quantities of purchases, suppliers were comfortably able to deliver materials in a timely manner, as seen by another modest improvement in vendor performance.
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