BENGALURU, May 23 Reuters Business activity in India expanded robustly in May, helped by the dominant services industry, according to a survey that also showed exports rising at a record pace and the sharpest job addition rate in nearly 18 years.

HSBC39;s flash India Composite purchasing managers39; Index, compiled by SP Global, rose slightly to 61.7 this month from April39;s final reading of 61.5, marking the 34th month above the 50level separating growth from contraction.

The composite PMI ticked up further in May, recording the third strongest reading in close to 14 years, supported by a sharp acceleration in the service sector, noted Pranjul Bhandari, chief India economist at HSBC.

The flash services PMI index rose to a fourmonth high of 61.4 this month from 60.8 in April and a preliminary manufacturing PMI showed strong growth, albeit slightly weaker than last month. It dipped to 58.4 from 58.8.

Robust demand was supported by new business in the services industry, which grew at the fastest pace since January, as well as rising manufacturing output and new orders.

Strong international demand meant overall exports expanded at the fastest rate since the start of the series in September 2014. It is the second time export growth has set a new high this year.

That boosted business confidence for the coming 12 months, especially in the services sector where it was the strongest since May 2013. Optimism among manufacturers was the highest in over nine years….