India’s economy surges further ahead in February
NEW DELHI : The Indian economy, which expanded at a four-month high in January, continued to strengthen in February, seeing accelerations in both manufacturing and services sectors during the month. While services sector output climbed to a seven-month high in February, manufacturing sector output reached a five-month high, firming India’s position as one of the fastest-growing major economies.
The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 61.5 in February from a revised reading of 61.2 for January—well above the 50-point threshold that differentiates expansion from contraction. The seasonally adjusted index measures month-on-month change in the combined output of India’s manufacturing and service sectors.
“Growth improved in both the manufacturing (five-month high) and services (seven-month high) economies, with survey participants attributing the upturn to buoyant demand conditions, investment in technology, efficiency gains, expanded clientele and favourable sales developments," HSBC said in a report released on Thursday. The latest flash PMI numbers, based on a survey of 400 manufacturers and 400 service providers, follow data showing a robust 7.6% growth in the Indian economy in the second quarter.
This growth was supported by increased government spending and strong performance in manufacturing, mining, and construction, apart from the services sector. The Reserve Bank of India in December revised its growth forecast for the Indian economy to 7% for the current fiscal year, an increase from its earlier projection of 6.5%.
This revision was based on higher-than-anticipated growth in the first two quarters of this financial year. “The pace of acceleration in the
. Read more on livemint.com
