NEW DELHI: Robust activity in manufacturing firms and service sector companies on the back of new orders and global sales pushed job creation in the private sector to its strongest in 18 years in June, a survey showed on Friday.
The HSBC Flash India Composite Output Index, which measures the month-on-month change in the combined output of India's manufacturing and service sectors, increased from 60.5 in May to 60.9 in June, highlighting a quicker rate of expansion that was significant by historical standards and in line with average over the past 12 months.
Growth was stronger at goods producers than at service providers - a trend that has been visible since Feb, the survey showed. Private sector companies attributed the strength to demand and new business gains as total new orders rose sharply and to a greater extent than in May.
New export orders increased for the twenty-second successive month in June. Despite slowing since May, the rate of expansion was sharp and the second-fastest since the series became available in Sept 2014. Survey participants pointed to gains from Africa, Asia, Australia, the Americas, Europe and West Asia.
The survey results showed that mild capacity pressures remained evident in June as private sector firms continued to signal higher volumes of outstanding business. Attempts to clear backlogs and fulfil rising production requirements led to a surge in overall employment. The pace of job creation was the fastest in over 18 years, according to the survey.