India’s economy is experiencing a surge in growth, with the manufacturing and services sectors performing exceptionally well in April. The HSBC Flash Purchasing Managers’ Index (PMI) indicates that the combined output from these sectors has expanded at the fastest pace in almost 14 years.
The services sector has been particularly strong, with its PMI rising to 61.7 from 61.2 in March. This is the highest level in three months. Manufacturing has also remained steady, with its PMI unchanged at 59.1 from the previous month.
A surge in international sales this month has fueled new order inflows for both manufacturing and services firms. Fresh export orders have grown at the fastest pace since September 2014. This has given a boost to overall business confidence, with panellists expecting further improvement in demand conditions over the coming year.
While manufacturers have increased output charges, improving their margins, services firms have seen operating margins worsen due to rising labor costs. Input costs have dipped in both sectors, and manufacturing firms have accelerated hiring while services companies have slowed down on new job creation.
