Manufacturing-service sector hiring of employees is the highest in 18 years, the fastest increase this year

Employment: Maitreyi Das, global economist at HSBC, said, that due to growth in the manufacturing and services sector, the combined PMI has increased in June. New export orders grew for the 22nd consecutive month in June and remained strong. However, the pace slowed down slightly after the record growth last month.

Jun 22, 2024 - 13:09
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Manufacturing-service sector hiring of employees is the highest in 18 years, the fastest increase this year

This has increased the country's manufacturing and service sector business activity in the month of June. As a result, the number of employee hiring among firms surged to an 18-year high and at the fastest since April 2006. Based on HSBC's Purchasing Managers Index, or PMI, employment has improved amid an increase in cross-border sales and businesses receiving new orders.

The service sector PMI has risen to 60.4 in June this year from 60.2 in May 2024. Manufacturing PMI is now 58.5 in June from 57.5 last month. The activity of manufacturing has fallen to a three-month low of 57.5 in May. This was due to heavy heat that had affected the volume. Service sector growth fell to a five-month low in May due to tough competition and heat.

The panelists participating in the survey said the cost of inputs has come down in June. However, the cost of labor and raw materials is still high. Manufacturing companies easily pass on higher costs to their customers. According to Maitreyi Das, global economist at HSBC, the combined PMI increased in June due to growth in manufacturing and service sectors. New export orders grew for the 22nd consecutive month in June and remained strong, though the pace slowed slightly after the record growth last month. She adds that new export orders have seen a slight slowdown in June, although it was the second-fastest growth in this series.

Muskan Kumawat Journalist & Writer