India's business activity rises to a 14-month high of 61 in June

Business activity in June

India’s business activity recovered to a 14-month high in June, fired up by services and manufacturing sectors, preliminary results of a private sector survey released on June 23 show.

HSBC's Flash India Composite Purchasing Managers' Index (PMI) rose to 61 during the month from May’s 59.3.

The economy has now weathered three consecutive months of geopolitical storms, starting with higher tariffs imposed by the US President Donald Trump on April 2, which were later paused.

Services PMI was at a 10-month high, while factory activity climbed to a 14- month high of 58.4.

PMI has now recorded an above-59 reading for three consecutive months, higher than 58.7 in the previous quarter when growth climb to a four-quarter high of 7.6 percent.

Experts indicate that growth is likely to temper in the first quarter of the current fiscal.

The widening conflict in the Middle East is also expected to weigh on business performance, as oil prices climb and trade routes face potential disruptions, especially after the US bombing of at least three Iranian nuclear facilities over the weekend.

Iran has vowed retaliation after US used massive bunker-busting bombs on sites including Iran's two main underground enrichment plants at Natanz and Fordow.

The benchmark Brent crude has gained 13 percent since the start of Israel-Iran conflict 10 days ago. Oil prices hit a five-month high on June 23 and are likely to climb further if Iran goes ahead with the blocking of Strait of Hormuz, through with 20 percent of the world’s oil and gas supplies flow.