India clocks record rise in export, employment at 18 year high in May

Indian economy has registered a record rise in exports and the sharpest upturn in employment over 18 years in May this year. According to the HSBC Flash Purchasing Manager’s Index (PMI), India recorded the third-strongest upturn in private sector output since July 2010.Although the manufacturing industry continued to lead the growth of both sales and output, it was the service economy that was responsible for the latest acceleration in overall economic expansion.
Other positive developments highlighted by the survey included a record rise in aggregate exports, the steepest expansion in private sector jobs since 2006 and a notable improvement in business confidence. On the price front, a faster increase in input costs pushed prices charged for Indian goods and services higher. Pranjul Bhandari, Chief India Economist at HSBC, said that the latest data showed strength in new export orders for both sectors, which rose at the fastest pace since the series started in September 2014.The flash services PMI index rose to a four-month high of 61.4 this month from 60.8 in April and a preliminary manufacturing PMI showed strong growth, albeit slightly weaker than last month. It dipped to 58.4 from 58.8.Robust demand was supported by new business in the services industry, which grew at the fastest pace since January, as well as rising manufacturing output and new orders.