Mumbai, July 26: India’s business activity accelerated to a three-month high in July as the services sector surged and manufacturing picked up momentum leading to companies hiring at the fastest pace in 18 years, according to the latest HSBC’s survey.HSBC’s flash India composite purchasing managers’ index compiled by S&P Global, rose to 61.4 this month from June’s final reading of 60.9, marking three years of continuous expansion.
“The Flash Composite Output Index signalled continued robust growth in India’s private sector. The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its long-run average,” observed Pranjul Bhandari, chief India economist at HSBC.
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India’s business activity surges to 3-month high in July
Job creation rose at the fastest pace since April 2006, supporting overall business confidence at the start of this quarter, the survey added.
By – IANSUpdate: 2024-07-25 13:00 GMT
Indias business activity surges to 3-month high in July
HSBC
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NEW DELHI: India’s business activity accelerated to a three-month high in July as the services sector surged and manufacturing picked up momentum leading to companies hiring at the fastest pace in 18 years, according to the latest HSBC’s survey.
HSBC’s flash India composite purchasing managers’ index compiled by S&P Global, rose to 61.4 this month from June’s final reading of 60.9, marking three years of continuous expansion.
“The Flash Composite Output Index signalled continued robust growth in India’s private sector. The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its long-run average,” observed Pranjul Bhandari, chief India economist at HSBC.
Overall expansion was led by the dominant services industry, which recorded a four-month high PMI of 61.1 this month up from 60.5 in June. Manufacturing also registered a strong growth with the factory PMI increasing to 58.5 from 58.3.
New orders placed with private sector firms rose sharply in July which led to a sharp increase in the number of new jobs created in the economy.
Job creation rose at the fastest pace since April 2006, supporting overall business confidence at the start of this quarter, the survey added.
The indexes are based on preliminary survey results and are a signal of business confidence in the economy. A reading above 50 indicates expansion compared with the previous month, while a print below that indicates contraction in activity.
“Companies turned more optimistic in July, following a moderation in business confidence in June,” HSBC said in a statement.