The HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors – climbed to a 14-month high of 61.0 in June.
Rising from 59.3 in May, the latest reading was consistent with a sharp rate of expansion that was well above the long-run series average.
Several positive developments emerged from the June HSBC ‘flash’ PMI data, as Indian companies scaled up output in response to faster increases in total new business intakes and international sales.
Notably, the upturn in export orders was the strongest since comparable data became available in September 2014.
With pending workloads continuing to accumulate, firms remained in hiring mode. Meanwhile, charge inflation softened as input costs rose at the slowest pace in ten months.
Manufacturers led the upturn in business activity, though growth also picked up pace in the service economy. Rates of increase were at two- and ten-month highs, respectively.
Output was boosted by favourable demand trends, efficiency gains and tech investment.
The HSBC Flash India Manufacturing PMI rose from 57.6 in May to 58.4 in June, signalling the best improvement in operating conditions since April 2024.
Private sector firms in India signalled an unprecedented increase in new export orders during June. June data showed an intensification of capacity pressures among Indian companies.
The combination of demand strength and rising backlogs prompted Indian companies to recruit additional staff in June.
Although prices charged for Indian goods and services continued to increase in June, the rate of inflation retreated from May's six-month high. Indian companies remained strongly upbeat towards the year-ahead outlook for business activity.