The service sector has shown good growth due to the increase in business activities in May. This has led to the fastest improvement in job creation in the private sector in 18 years i.e. since September 2006. Exports are also growing at record pace. According to S&P Global, HSBC’s India Composite Purchasing Managers’ Index or PMI has reached 61.7 in May.
According to the data, the PMI index has remained above 50 for the 34th consecutive month. Being above 50 means boom in business activities and below that means weakness. Also, business activity has reached a four-month high. It rose slightly to 61.7 this month from April’s last reading of 61.5. This indicates that the pace of activity will continue in the times to come.
PMI increased at a strong pace for the third time
Pranjul Bhandari, HSBC’s chief economist in India, said the overall PMI in May grew at the strongest pace for the third time in nearly 14 years.
Total exports grew at the fastest rate since the series began in September 2014. This is the second time that export growth has hit a new high this year. This has increased business confidence for the coming 12 months.
