News Brief
India’s Flash PMI Hits New High In August On Surging Services, Manufacturing Growth
India's Growth (Representative Images)
India’s private sector economy recorded its sharpest expansion in nearly two decades in August, with the HSBC Flash Composite PMI Output Index climbing to 65.2, up from 61.1 in July, the Business Standard reported.
This marks the strongest growth since survey records began in 2005, supported by a surge in both services and manufacturing.
"The Services flash PMI touched an all-time high of 65.6, led by a sharp pick up in new business orders, both export and domestic,” Pranjul Bhandari, Chief India Economist at HSBC, was quoted as saying by Business Standard.
The services sector was the main driver, with activity rising to an unprecedented 65.6 from 60.5 in July, reflecting a substantial boost in domestic and export orders.
Manufacturing activity also strengthened, with the flash PMI reaching 59.8, its highest since January 2008, underpinned by rising demand in the domestic market.
Demand conditions improved across the board. Businesses in both goods and services saw strong inflows of new work, while export orders expanded at the fastest pace since composite data tracking began in 2014.
Employment trends remained positive, with August marking the 27th consecutive month of job creation.
The pace of hiring accelerated in services, offsetting a slight moderation in factory jobs.
Work backlogs increased only marginally, the slowest since May, as companies added more staff to meet higher demand.
Pricing pressures, however, intensified. Rising wage costs in services and higher raw material expenses pushed input prices up. Firms raised output charges at the fastest pace in over 12 years, citing resilient demand that enabled them to pass on cost increases to customers.
Business confidence improved notably, reaching its strongest level since March.
