India private sector growth loses mild momentum in May
A key area of strength was exports, with survey participants reporting one of the strongest improvements in international demand in 19-and-a-half years of data collection.
The latest results also revealed a fresh record-rise in employment, as firms continued to adjust operating capacities in line with ongoing increases in sales.
Price gauges showed an intensification of input cost and output charge inflation, with rates of increase edging above their historical averages in each case.
Registering 58.8 in May, the seasonally adjusted HSBC India Services PMI Business Activity Index was broadly in line April's reading of 58.7 and therefore signalled another sharp rate of expansion.
Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity. Similar to the trend for output, new orders rose at a sharp pace that was largely aligned with those registered from February to April.
The HSBC India Composite PMI Output Index came at 59.3 in May, down only marginally from 59.7 in April and therefore signalling a further sharp upturn in aggregate activity.
The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace. Regarding new business, there were slightly weaker increases at manufacturing companies and their services counterparts.
At the composite level, the pace of growth remained sharp despite easing to a three-month low. Ongoing improvements in demand for Indian goods and services led to survey-record increases in jobs across the two sectors.
Hence, aggregate employment expanded at an unprecedented pace. Input cost inflation across the private sector accelerated to a six-month high, with the sharper upturn registered in the services economy.
Selling prices also increased at the fastest pace since November 2024, though here the quickest rise was in manufacturing.
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