Service with a Smile: India’s PMI Rockets to Highest Since April 2024

Image Source: Business Standard

India's private sector recorded its steepest growth in more than a year, as the HSBC Flash India Composite PMI Output Index stood at 61.2 in May 2025—its highest since April 2024. The impetus was led mostly by the services industry, which saw its fastest pace in 14 months, indicating firm demand, hiring, and renewed business optimism even as input prices increased.

Topline Growth

The Composite PMI Output Index rose to 61.2 in May, from 59.7 in April, the quickest rate of growth in 13 months and well above the 50-point mark that delineates expansion from decline.
This is the 46th month running of expansion for India's private sector.

Services Sector Fuels Expansion

The Services PMI Business Activity Index rose to 61.2 in May from 58.7 in April, the fastest rate of growth in 14 months.
It was supported by robust domestic and overseas demand, IT spending, and capacity increases.
Service providers registered the quickest increase in output since March 2024, with new business and exports reaching a year high.

Manufacturing Maintains Momentum

The Manufacturing PMI rose to 58.3 in May from 58.2 in April, showing ongoing sector health though with a mild decline in growth momentum.
Manufacturing output fell a little but remained strong, sustained by stable new orders and employment.

Employment and Job Creation

Employment growth recorded a new series high (since December 2005), both full-time and part-time personnel hired on permanent and temporary terms.
The services industry led the job creation, pointing towards good labor market conditions in addition to business expansion.

Business Confidence and Demand

Business confidence rose for the first time since January with firms attributing expansion to robust demand, technological improvements, and increased capacities.
The private sector experienced the highest growth in new orders since April 2024, and exports also posted the fastest growth in a year.

Increasing Input Costs

Input prices and output fees increased at the quickest rate after late 2024, indicating rising inflationary pressures despite the pick-up in business activity.
Troupers were able to keep up with workloads even with increased costs owing to continuous job creation and softer pressure on operating capacities.

Sources: Business Standard, SocialNews.XYZ, Outlook Business, The Hans India, Reuters, HSBC Flash India PMI Press Release