India’s business activity accelerated in September with the HSBC flash composite PMI rising to 56.5, its highest since June, driven by stronger growth in both manufacturing and services.
India’s business growth accelerated in September on stronger demand in both manufacturing and services, according to HSBC’s flash India Composite Purchasing Managers’ Index, which rose to 56.5 from August’s 54.3, its highest since June and above its long-run average. The reading exceeded the Reuters poll median forecast of 54.4. The manufacturing PMI climbed to 55.7 from 52.8, its highest in seven months, as output and new orders grew faster and goods producers resumed hiring after a marginal reduction in August. The services index rose to 55.8 from 54.1, though new exports in the services sector increased at the slowest pace in 33 months, offsetting a modest pickup in manufacturing exports and dragging overall export growth lower. Hiring in the services sector also lost momentum.
Despite the September rebound, the composite index averaged 55.1 for the quarter, down from 58.2 in the April to June quarter, suggesting softer growth in Asia’s third-largest economy following a 7.8 per cent GDP expansion in the preceding quarter. Overall input-cost inflation eased to its lowest since January, driven by services, offering businesses some relief, though selling-price inflation was broadly unchanged, suggesting consumers saw limited relief from rising prices. Business confidence about the coming year rose to a four-month high.
Source: Reuters
