look news india
Mumbai: Job creation was at an 18-year high in June as activity in the manufacturing and services sectors picked up. The composite preliminary purchasing managers' index (PMI) for the manufacturing and services sectors rose to 60.90 in June from 60.50 in May.
Due to the strong activities in the service and manufacturing sectors in the first quarter of the current financial year, it can be said that the current financial year has started strongly in terms of economic growth rate in the country. In the last financial year, the economic growth rate was 8.20 percent, which is the highest rate among major economies.
The preliminary HSBC PMI, a composite of the manufacturing and services sectors compiled by S&P Global, has remained above 50 for three consecutive years in June.
According to the survey report, there has been a significant increase in the activities of the service sector in the country as compared to the manufacturing sector. The preliminary PMI for the manufacturing sector for June is 58.50 while this figure for the service sector is 60.40. Despite the global economic slowdown, activities in the service and manufacturing sectors are seen to be strong in India.
New export orders rose for the 22nd consecutive month in June. As a result of strong demand, it is the turn of companies to hire more workers. The amount of employment generation in June of the current year has been the highest since April 2006. Employment generation in the manufacturing sector has been higher than in the services sector.
Price growth in the manufacturing and services sectors has slowed, making conditions favourable for retail inflation. Business optimism fell to a three-month low in June but the outlook for the next 12 months remains positive.