Manufacturing Growth Accelerates to Over 18-Year High in June, Driving Record Job Creation
India’s manufacturing and services sectors witnessed strong growth in June as reflected by the Purchasing Managers’ Index (PMI) report, with business hiring soaring to its highest level in over 18 years on the back of robust demand.
According to the latest HSBC India PMI survey, the composite output index – which combines manufacturing and services – rose from 60.5 in May to 60.9 in June. A figure above 50 indicates expansion. Both factories and service providers saw a rise in new work during the month, led primarily by domestic orders.
The headline figure was supported by gains in both the manufacturing and services sectors, with factories posting a more accelerated growth pace. New export orders slowed marginally but remained well above their long-term average.
Capacity pressures due to rising demand caused companies to increase hiring substantially. The rate of job creation in June was the fastest witnessed since March 2006, reflecting strengthening hiring activity across the private sector.
The survey also reported a slight easing in input cost pressures last month, with fewer raw material price hikes. While overall cost levels stayed elevated, manufacturers were partly able to pass on costs to customers through output price increases. This led to margin improvements, especially for goods producers.
Though near-term optimism among firms dipped due to global uncertainties, the outlook remained positive. Analysts said marketing efforts would help sustain demand momentum going forward.
The findings point to India’s manufacturing and jobs recovery gaining momentum in June, backed by resilient demand and easing inflationary pressures. However, uncertainties cloud the economic horizon.
