India’s Economic Pulse Quickens: HSBC Flash PMI Hits Multi-Month Highs in June

Image Source: KNN India

Indian private sector activity accelerated in June, as HSBC Flash Purchasing Managers' Index (PMI) readings posted multi-month highs in services, manufacturing, and composite industries. The positive readings reflect high demand, strong job creation, and improving business confidence despite fears of economic uncertainty worldwide.

1. Key PMI Readings in June 2025

Services PMI rose to 60.7 from 58.8 in May, indicating quicker expansion in the services sector.
Manufacturing PMI rose to 58.4 from 57.6 in May, indicating strong factory production and new orders.
Composite PMI, combining the two sectors, rose to 61.0, from 59.3, to post one of the strongest readings in recent months.

2. What's Driving the Growth?

New business intakes and export orders remained firm across the board.
Job creation picked up at the highest pace in 18 years, HSBC states, as firms stepped up recruitment to play catch-up with demand.
Inflation in raw material costs remained moderate, and selling prices rose, signaling firms are beginning to develop pricing power.

3. Economic Outlook

The numbers suggest India's economy is firmly on a recovery path, and manufacturing and services alike are witnessing broad-based expansion.
Analysts expect the RBI to persist with an accommodative stance, balancing growth momentum against managing inflation.

Sources: Economic Times, Moneycontrol, LiveMint