India's pvt sector growth losing momentum in May

The recovery in India’s private sector activity appears to have lost some momentum in May, with the latest HSBC Flash PMI showing softer growth in output, new orders, exports and employment.

- Sreedev Krishnakumar

The loss of momentum was most visible in demand conditions.

(MINT)

Data released by S&P Global on Thursday suggests that while business activity continued to expand, the rebound after March’s sharp slowdown did not strengthen further.

The HSBC Flash India Composite PMI Output Index came in at 58.1 in May from 58.2 in April. The Services PMI Business Activity Index edged up to 58.9 from 58.8, but this was offset by weaker manufacturing activity. The Manufacturing PMI Output Index slipped to 56.6 from 56.9, while the headline Manufacturing PMI fell from 54.7 to 54.3. All readings remained above 50, signalling expansion, but the data shows that the April recovery did not gather further pace.