Survey: Private sector job creation is at its strongest in 18 years

NEW DELHI: Robust activity in manufacturing and services firms on the back of new orders and global sales pushed private sector job creation to its highest 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 services sectors, rose to 60.9 in June from 60.5 in May, reflecting a faster rate of expansion by historical standards and in line with the average over the past 12 months.


Growth was stronger among goods producers than among services – a trend that has been evident since February, according to the survey. Private sector firms attributed the strength to demand and new orders, as total new orders rose sharply and to a greater extent than in May.

In June, new export orders rose for the 22nd consecutive month. Despite a slowdown since May, the growth rate was strong and the second fastest since data began in September 2014. Survey respondents pointed to increases in Africa, Asia, Australia, the Americas, Europe and West Asia.

The survey results showed that slight capacity pressures remained evident in June as private sector companies continued to report higher order volumes. Attempts to clear backlogs and meet increasing production demands led to an increase in overall employment, with job creation at the fastest pace in over 18 years, according to the survey.

Sybil Alvarez

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