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Informist, Friday, Nov. 22, 2024

 

--India Nov flash composite PMI output index 59.5 vs 59.1 Oct final

--India Nov flash services PMI activity index 59.2 vs 58.5 Oct final

--India Nov flash manufacturing PMI 57.3 vs 57.5 Oct final

 

NEW DELHI – India's private sector activity in November grew at the fastest pace in three months, on the back of a sharp acceleration in the services sector. The HSBC Flash India Composite Purchasing Managers' Output Index, compiled by S&P Global, rose to 59.5 in November from the final print of 59.1 in October.

 

The flash services PMI index rose to 59.2 in November from last month's final print of 58.5, while the manufacturing PMI eased slightly to 57.3 from 57.5 in October. A Purchasing Managers' Index reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.

 

"Strong end-demand and improving business conditions pushed services sector employment to the highest level ever recorded by this indicator since December 2005. Meanwhile, price pressures are rising for raw materials used by manufacturers, as well as food and wage costs in the services sector," Pranjul Bhandari, Chief India Economist at HSBC, said in a release.

 

Soaring new business gains and export sales supported output growth across India's private sector economy in November, S&P Global said. "Rising capacity pressures, evidenced by increasing backlogs, prompted companies to ramp up hiring efforts, which was supported by an overall improvement in business activity expectations. However, this strengthening of operating conditions came amid intensifying cost pressures and the steepest upturn in selling prices since February 2013," it said. 

 

The manufacturing PMI output index eased marginally to 60.2 in November from the final print of 60.4 in October. During the month, manufacturers experienced faster expansion in new orders and output than services firms, but it was among the latter where job creation was most pronounced, S&P Global said. Further, the expansion in outstanding business volumes was moderate, but nevertheless the quickest since May. 

 

The overall rate of expansion was substantial and the quickest since August. For the third consecutive month, goods producers noted a faster upturn than service providers, S&P Global said. Further, the rate of job creation accelerated to the steepest since composite data became available in December 2005, driven by rising workforce numbers across the service economy, it said.

 

Indian firms indicated that rising export orders supported the expansion in total sales. "The overall rate of growth was marked, with the respective seasonally adjusted index nearly four points above its historical average. Manufacturing firms registered a slightly stronger increase in international sales than their services counterparts," it said.

 

Cost pressures across India's private sector intensified in November, touching their highest since August 2023. "In response to rising operating costs, private sector companies in India hiked their selling charges again during November. The rate of inflation was sharp and the fastest in just under 12 years," S&P Global said.

 

The Future Output Index was at a six-month high and nearly six points above its long-run average, according to S&P Global. Companies indicated that marketing efforts and new client enquiries fare well for the business outlook, with positive demand trends also likely to underpin growth over the course of the coming 12 months.  End

 

Reported by Pratiksha

Edited by Ashish Shirke

 

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