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Informist, Monday, Dec. 16, 2024

 

--India Dec flash composite PMI output index 60.7 vs 58.6 Nov final

--India Dec flash services PMI activity index 60.8 vs 58.4 Nov final

--India Dec flash manufacturing PMI 57.4 vs 56.5 Nov final

 

NEW DELHI – India's private sector output expanded at the fastest pace in four months in December, led by a jump in service sector activity, even as companies across both the manufacturing and the service sectors saw a faster upturn in new business intakes. The HSBC Flash India Composite Purchasing Managers' Output Index, compiled by S&P Global, rose to a four-month high of 60.7 in December from the final print of 58.6 in November.

The flash manufacturing PMI index rose to 57.4 in December from last month's final print of 56.5, while the services PMI increased to 60.8 from 58.4 in November. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 is indicative of contraction.

 

"Demand for Indian goods and services continued to improve in December, as seen by a sharp increase in new orders that was the most pronounced since July," S&P Global said in a release. "Service providers led the rise in sales, although growth strengthened across the two tracked sectors." 

 

""In this flash release, the small rise in the headline manufacturing PMI in December was mainly driven by gains in current production, new orders and employment," Ines Lam, an economist at HSBC, said in the release. "The expansion in new domestic orders quickened, suggesting a pick-up in growth momentum in the economy," Lam noted.

 

Improvement in sales in December was supported by international demand for Indian goods and services, S&P Global said. New export orders expanded at the quickest in five months in December, with manufacturing companies witnessing a faster increase than their services counterparts, S&P Global said. 

 

As new business intakes continued to rise, firms hired extra staff to expand operating capacities. Firms recruited both permanent and temporary staff. The overall rate of growth climbed to a new series peak, amid record increases in both the manufacturing and service sectors, S&P Global said. 

 

Cost pressures for Indian companies receded in December. However, firms reported an increase in expenses with higher costs for food, freight, labour, leather and rubber, S&P Global said, adding that the "rates of inflation were broadly similar across the manufacturing and service sectors."

 

"Amid reports of rising costs burdens and demand strength, private sector companies in India continued to increase their selling prices in December," S&P Global said. The rate of charge inflation eased in December from November's near 12-year high, but remained above the series trend. Goods producers were more aggressive in their price setting than service providers.

 

Business optimism among private sector companies improved in December. The overall level of positive sentiment rose to its highest since September 2023, as both manufacturers and services firms became more upbeat towards the year-ahead outlook for output.  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

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