India's business activity accelerated in June, with job creation reaching an 18-year high, according to the PMI.

21 June, 2024
Summary :

India's business activity grew more rapidly in June compared to May, driven by advancements in manufacturing and services. Job creation surged to its highest level in over 18 years, indicating a robust start to the financial year. HSBC's flash India Composite Purchasing Managers' Index climbed to 60.9 in June, marking nearly three years above the 50-level that separates growth from contraction.

India business activity accelerated in June

Business activity in India accelerated in June compared to May, driven by improvements in manufacturing and services, according to a business survey. The survey also revealed that job creation reached its highest level in over 18 years.

Strong performance in both sectors at the end of the first fiscal quarter marked a robust beginning for India's economy this financial year. Last year, India recorded the fastest expansion among major countries at 8.2%, driven in part by vibrant manufacturing.

The HSBC flash India Composite Purchasing Managers' Index, compiled by S&P Global, increased to 60.9 in June from the previous month's final reading of 60.5.

The manufacturing index saw larger gains, rising to 58.5 from 57.5 in May, while the services industry, which remains dominant, saw a slight increase to 60.4 this month from 60.2. These figures contribute to India's ongoing expansion despite a slowing global economy.

The strong expansion was supported by robust growth in both manufacturing output and orders, along with increased business activity among services firms. New export orders continued to expand for the 22nd consecutive month in June, maintaining robust levels, albeit with a slight easing in pace compared to the record growth seen last month.

Strong demand led companies to increase hiring, with overall employment rising at the fastest pace since April 2006. Job creation in the manufacturing sector outpaced that in the services sector.

According to a Reuters poll, boosting employment remains the primary challenge for the NarendraModi government, recently elected for an unprecedented third term earlier this month.

Meanwhile, price increases at firms have moderated since May, which is positive for the outlook on retail inflation. Service sector input costs saw their slowest increase in four months, while the pace of price hikes for clients remained largely steady.

Despite a dip to a three-month low, optimism regarding future output in June stayed above the historical average, buoyed by anticipated gains from pending proposals, efficiency improvements, and favorable exchange rate forecasts for the coming year.

About RR Finance

An integrated financial services group, offering a wide range of financial products and services to corporates, institutions, high-net worth individuals and retail investors.

Explore a wide range of investment opportunities with RR Finance :


Disclaimer: The recommendations, suggestions, views, and opinions expressed by experts are their own and do not reflect the views of RR Finance. This blog is for information purpose only, not an investment advice.

Popular posts from this blog
Stock Market Trends Following LokSabha Elections: Insights from History
Stock Market Trends Following LokSabha Elections

Historical data indicates that Indian stock markets have typically risen in the six months following LokSabha election results, regardless of the outcome. Past elections in 2004, 2009, 2014, and 2019 saw gains in the benchmark indices SENSEX and NIFTY, with increases ranging from 5% to 36%. Key factors influencing post-election market performance include policy reforms, RBI policies, the Union Budget, and global economic conditions. As a result, investors remain cautiously optimistic for 2024.

Report: OPEC+ Extends Oil Output Cuts into Third Quarter to Bolster Prices
Extends Oil Output Cuts into Third Quarter to Bolster Prices

Oil prices hover around $80 per barrel, falling below the threshold necessary for many OPEC+ members to balance their budgets. Concerns persist over sluggish demand growth in China, the world's leading oil importer, putting downward pressure on prices....

Exploring Opportunities: SME IPO Investments
Know About Upcoming SME IPOs

Ready to invest? Explore the latest SME IPOs for potential growth opportunities! 3C IT Solutions & Telecoms (India) Limited, Sattrix Information Security Limited, and Magenta Lifecare Limited are offering exciting prospects for investors. From IT products and services,data security solutions to foam-based products, each IPO brings a unique story and potential for returns. Dive into the details, consider your investment goals, and seize the opportunity to be part of these promising ventures!...

RR Investors Capital Services Pvt. Ltd AMFI-registered Mutual Fund Distributor

ARN-0032 Validity 14-Mar-2027

Head Office - 4th floor, Indraprakash Building 21, Barakhamba Road, New Delhi – 110001

callLandline Number
+91 11-4444-1111

Customer Care
+91 9350316010

  • SSL
Follow Us

SEBI Registration No: NSE Cash: INB231219636 | SEBI Registration No: NSE Derivative: INF231219636 | SEBI Registration No: BSE Cash: INB011219632 | SEBI Registration No: MCX-SX: INE261219636 | SEBI Registration No: NSE Currency: INE231219636 | SEBI Registration No: USE: INE271219631 | SEBI Registration No: CDSL: IN-DP-CDSL-3242005 | NCDEX Membership No: 00635 | MCX Membership No: 28850 | NSEL Membership No: 10650 | RBI Registration No: NBFC: N-14.03215 | IRDA Registration Number : CB-066/03 | AMFI Registration No : ARN -0032| SEBI Registration No: Merchant Banker: INM000007508

* Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

© 2022 RR Investors Capital Services Pvt. Ltd | All Rights Reserved.