HSBC Flash PMI Rises To 8-Month High Of 60 In April

The HSBC ‘flash' PMI data showed quicker expansions in aggregate output and employment. Rising from a final reading of 59.5 in March to 60.0 in April, the HSBC Flash India Composite Output Index — a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors —highlighted the fastest rate of expansion since August 2024.

There were quicker increases across both the manufacturing and service sectors, with the former seeing the sharper upturn. At 58.4 in April, up from 58.1 in March, the HSBC Flash India Manufacturing PMI indicated the strongest improvement in the health of the sector in one year.

Companies surveyed said that they raised output levels in response to efficiency gains, positive demand trends and successful advertising. Some panelists also reported an improvement in international competitiveness as a result of the rupee's depreciation against the US dollar. Indeed, private sector firms noted a record increase in new export orders during April amid healthy demand from Africa, Asia, Europe, the Middle East and the Americas.

Goods producers saw a stronger rate of expansion than service providers, and one that was the most pronounced in over 15 years. Aggregate sales increased at a sharp pace that was the fastest since August 2024. Once again, manufacturing companies registered a quicker upturn in new business than their services counterparts. Robust intakes of new work exerted upward pressure on the capacity of Indian companies, who observed the fastest rise in outstanding business volumes since August 2022. There were quicker increases in backlogs across both the manufacturing and services economies.

Anecdotal evidence showed that full- and part-time staff had been recruited in April. Rates of job creation were equal at goods producers and service providers.

Although input prices continued to increase across the Indian private sector, the rate of inflation matched that seen in March and remained below its long-run average. Private sector firms continued to lift their selling prices. Manufacturers led the upturn with the steepest rate of inflation in over 12 years.

Trends for business sentiment were mixed, as an improvement among goods producers contrasted with fading optimism at services firms. At the composite level, the degree of positivity was at its weakest for eight months.