Economy - Reports
India's business sector output continues strong growth with 60.5 composite PMI in August As on : 22-Aug-24  10:43

August data indicated a thirty-seventh consecutive monthly rise in private sector output across India, with the rate of expansion remaining substantial by historical standards.

The latest HSBC 'flash' PMI survey, compiled by S&P Global, also highlighted a sharp upturn in new business intakes, solid job creation and upbeat expectations towards growth prospects. On the price front, there were softer increases in both input costs and selling prices.

The headline HSBC Flash India Composite Output Index ' a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors ' stood at 60.5 in August, little changed from 60.7 in July and pointing to a sharp rate of expansion that was above its long-run trend level (54.6).

There was a softer increase in manufacturing industry output and a fractionally stronger rise in activity across the service economy. Yet, the former led the upturn.

The HSBC Flash India Manufacturing PMI ' a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases ' slipped from 58.1 in July to a three-month low of 57.9 in August.

The latest reading was nevertheless above the historical average (54.0) and signaled a strong improvement in the health of the sector.

Goods producers reported the first decline in outstanding business volumes in just under a year, while service providers indicated a thirty-second consecutive monthly rise. The pace of accumulation was mild among the latter, and the weakest since February.

The HSBC Flash India Services PMI rose to 60.4 in August from 60.3 in July.

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