India’s private sector business activity levels expanded at the mildest pace in nine months this September, with output, new orders and export deals clocking the softest upticks so far in 2024, as per the HSBC Flash India Composite PMI Output Index, an early survey-based indicator of manufacturing and services sectors’ trends.
September’s flash reading of the index, based on inputs from 80% to 90% of 800 firms surveyed for the monthly Purchasing Managers Indices (PMIs) on Manufacturing and Services, stood at 59.3, compared to the previous month’s composite PMI print of 60.7. A reading of 50 on the index reflects no change in activity levels, while a score of over 50 indicates an expansion.
The flash Manufacturing PMI for this month eased to 56.7 from 57.5 in August, while the Flash India Services PMI Business Activity index saw a sharper decline from 60.9 in August to 58.9 in September.
“Growth in new orders moderated by a touch in September, but hiring levels rose at a faster pace, supported by improving business confidence. In fact, the rise in employment in the service sector was the steepest since August 2022, as companies responded to robust growth in new orders,” noted Pranjul Bhandari, HSBC’s chief India economist.
While input cost inflation picked up pace again this month, services as well as manufacturing players opted to hike customer charges at a slower pace. However, manufacturing firms faced a bigger reduction in margins than services players, Ms. Bhandari reckoned.
Published – September 23, 2024 07:39 pm IST
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