Pvt Sector Growth Picks Up in May, Led by Services

Services sector posts fastest output rise in 14 months, while mfg growth slows down

- Rhik Kundu

NEW DELHI: India's private sector gained momentum in May, led by a sharp acceleration in services activity, as strong demand from both domestic and international markets drove business expansion and hiring, according to the HSBC Flash India PMI survey released Thursday.

Compiled by S&P Global, the survey also signaled a revival in business confidence, the first uptick since January.

The HSBC Flash India Composite Output Index, which captures activity across both manufacturing and services, is estimated to have risen to 61.2 in May from 59.7 in April, indicating robust expansion. A reading above 50 denotes growth, and the index has now remained in expansion territory for over three years.