Private sector activity hits 3-month high of 61.4 in July
Private sector activity in India rose to a three-month high of 61.4 in July from 60.9 in the previous month, the HSBC Flash India Composite Output Index showed Wednesday. Backlogs of work rose further, prompting the best upturn in employment in over 18 years, according to the survey report.
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Manufacturers particularly noted higher prices for coal, leather, pharma products, rubber and steel while services companies specifically cited egg, meat and vegetables as sources of inflation.
The reading on the index remained above the 50-mark, which separates expansion from contraction for 36th consecutive month. The flash PMI records 75-85% of the total 800 Purchasing Managers Index survey responses by services and manufacturing firms received every month.
The HSBC Flash India Manufacturing PMI was at a three-month high of 58.5 in July from 58.3 in June, signalling a historically strong improvement in the health of the sector. The HSBC Flash India Services PMI Business Activity Index was 61.1 in July as against 60.5 in June.
«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,» said Pranjul Bhandari,
