India’s economic engine accelerated in June, with business activity hitting a 14-month high, led by robust growth in both manufacturing and services, according to HSBC Flash PMI data.
The HSBC Flash Composite Output Index jumped to 61, the highest since April 2024. A reading above 50 signals expansion — and India has now maintained growth momentum for over three years straight.
Key Highlights:
- Composite PMI :rose to 61 — highest in 14 months, signaling sharp expansion.
- Manufacturing PMI increased to 58.4 (up from 57.6 in May).
- Output Index touched 61.5, the strongest since April 2024.
- Services PMI jumped to 60.7 (up from 58.8), indicating sustained demand.
- Export Orders surged — driven by demand from Asia, Europe, West Asia, and the US.
- Employment rose in both sectors, though services hiring saw a slight dip.
- Cost pressures (input & output inflation) persisted but showed signs of easing.
- Business confidencefor the year ahead declined to a 2-year low, with manufacturers more optimistic than service providers.
- Technology investment and operational efficiency were key growth drivers.
Expert Insight:
“Robust global demand and rising backlogs are prompting manufacturers to hire more aggressively,” said Pranjul Bhandari, Chief India Economist at HSBC.
Logistics Takeaway:
For logistics and freight stakeholders, this sustained momentum — especially in exports and manufacturing activity — signals continued demand for cargo movement, warehousing, and supply chain optimization. The rise in backlogs and hiring suggests possible future pressure on capacity — a key area to monitor.
