Informist, Thursday, Aug 22, 2024

--India Aug flash composite PMI output index 60.5 vs 60.7 Jul final

--India Aug flash services PMI activity index 60.4 vs 60.3 Jul final

--India Aug flash manufacturing PMI 57.9 vs 58.1 Jul final

--India Aug flash mfg PMI output index 60.9 vs 61.7 Jul final

NEW DELHI – India's private sector activity slowed down slightly in August compared with the previous month because of a slower expansion in the manufacturing sector. The HSBC Flash India Composite Purchasing Managers' Output Index, compiled by S&P Global, eased to 60.5 in August from the final print of 60.7 in July.

"India's flash composite PMI slipped slightly in August, though it remained significantly higher than the historical average," said Pranjul Bhandari, chief India economist at HSBC, in the release. "The manufacturing sector experienced a softer rise in output, while services firms saw a slightly quicker rise in business activity."

The flash manufacturing PMI index fell to a three-month low of 57.9 in August from the last month's final print of 58.1, while the services PMI rose to 60.4 from 60.3 in July. A Purchasing Managers' Index reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.

Apart from the headline prints, the survey also highlighted a sharp, albeit slower, rise in new orders, robust job creation and upbeat expectations about growth prospects. On the price front, both input costs and selling prices rose at a softer pace in August than last month, S&P Global said.

The increase in new orders in August was the slowest since May, but the pace of expansion remained sharp, indicating continued strong demand and favourable market conditions, the survey said. The manufacturing PMI output index eased to 60.9 in August from the final print of 61.7 in July.

There were signs of capacity pressures at companies in August, evident in a further increase in backlogs, but trends diverged at the sub-sector level, S&P Global said. "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," S&P Global said.

The pace of job creation in August was broadly similar to July. Payroll numbers rose in the service sector, supporting a 27th successive month of expansion at the composite level, S&P Global said.

Firms surveyed by S&P Global said cost burdens increased during August, led by a rise in building maintenance, food, labour, raw material, and transportation costs. The overall rate of inflation, however, eased to a six-month low. Charge inflation climbed to a near 11-year high at goods producers, whilst softening at service providers.

Private sector companies remained optimistic about the growth outlook on expectations that demand conditions will remain favourable. End

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

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