Economic activity: Strong economic activity, Job creation for 18 years

NEW DELHI: Economic activity remained strong in May, led by the services sector and strong export growth, and job growth was the highest in 18 years, data showed on Thursday.

The HSBC Flash India Composite Output Index – an index that measures the month-on-month change in the combined output of India’s manufacturing and services sectors – rose from a final reading of 61.5 in April to 61.7 in May. Flash PMI is created based on responses to questionnaires sent to survey panels of approximately 400 manufacturers and 400 service providers.

Increase

Data compiled by S&P Global shows the third-fastest rate of growth in private sector output since July 2010. While the manufacturing industry continued to lead growth in both sales and production, it was the service economy that was responsible for the recent acceleration in overall expansion, according to data. economic.

Other positive developments highlighted by the May survey included serial record growth in aggregate exports, the sharpest increase in private sector jobs since September 2006 and improved business confidence.

“The data showed the strength of new export orders for both sectors, which grew at the fastest pace since the series began in September 2014. Levels of optimism for the coming year rose to the highest in more than 11 years, with companies increasing their hiring levels as a result. However, higher production costs in both sectors have led to further margin squeeze, especially for service providers,” said Pranjul Bhandari, chief economist at HSBC India.

Continued strong growth in new orders has contributed to job creation across the private sector. Employment has increased month by month over the past two years, and in May the pace of growth was the fastest since September 2006.

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