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Informist, Wednesday, Jul 24, 2024

 

--India Jul flash composite PMI output index 61.4 vs 60.9 Jun final 

--India Jul flash services PMI activity index 61.1 vs 60.5 Jun final 

--India Jul flash manufacturing PMI 58.5 vs 58.3 Jun final 

--India Jul flash mfg PMI output index 62.2 vs 61.9 Jun final 

 

NEW DELHI - India's private sector activity expanded at a faster pace in July compared to the previous month, with the service sector leading the acceleration. The HSBC Flash India Composite Purchasing Managers' Output Index, compiled by S&P Global, rose to a three-month high of 61.4 from the final print of 60.9 in June.

 

The Flash Services PMI index increased to a four-month high of 61.1 in July from last month's final print of 60.5, while manufacturing PMI was at a three-month high of 58.5 from 58.3 in June. A Purchasing Managers' Index reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.

 

"The Flash Composite Output Index signalled continued robust growth in India's private sector," Pranjul Bhandari, chief India economist at HSBC, said in the release. "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," Bhandari noted.

 

New business intakes and output rose sharply in July thanks to favourable market conditions, which underpinned the upturn in private sector activity this month, S&P Global said. Firms surveyed by S&P Global also mentioned buoyant client appetite, enhanced technology and a greater number of events behind the rise in activity.

 

Backlog of work rose in July, which prompted firms to hire staff at one of the fastest pace in over 18 years, S&P Global said. "Besides taking on additional workers, goods producers lifted buying levels at the fastest pace in three months."

 

Inflationary pressures rose in July on the back of higher material, transportation and labour costs, S&P Global said. In particular, selling prices rose to the greatest extent since February 2013. Manufacturers particularly noted higher prices for coal, leather, pharma products, rubber and steel. Service providers specifically cited eggs, meat and vegetables as sources of inflation, S&P Global said.

 

"A pick up in cost pressures, alongside positive demand trends, reportedly encouraged companies in India to increase their own selling prices in July," it said. The overall rate of charge inflation was the highest in over 11 years.

 

Firms remained confident of a rise in business activity in the year ahead and the level of positive sentiment increased from June, S&P Global said. "Among the reasons underpinning optimism were increased advertising, buoyant demand and new client enquiries."  End

 

Reported by Shubham Rana

Edited by Vandana Hingorani

 

 

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