India’s private sector economy gains momentum in Sep over strong manufacturing: PMI data
New Delhi: India’s private sector economy saw a firmer improvement in business conditions in the month of September, the HSBC Flash PMI data showed on Wednesday.
With HSBC Flash India Composite PMI Output Index at 56.5 — up from a final reading of 54.3 in August — output growth ticked higher at both manufacturing and services companies, with goods producers leading the latest upturn. Aggregate new orders also rose at a quicker pace, prompting a solid expansion in jobs, according to the PMI data.
Meanwhile, inflationary pressures faded and business confidence strengthened.
The latest print was consistent with a sharper expansion in private sector activity and one that was the most pronounced since June. Moreover, the respective index was back above its long-run average.
“Activity in the private sector gained momentum, led by stronger manufacturing. Output and new domestic orders rose at faster rates. Renewed tensions in the Middle East have once again led firms to build buffers to manage the uncertainties,” said Pranjul Bhandari, Chief India Economist at HSBC.
Input purchases picked up pace, and the stocks of finished goods index is now at an 11-and-a-half-year high. Price pressures firmed at manufacturers, with output price inflation gathering pace, signalling a renewed push to protect margins, Bhandari noted.
Indian private sector firms recorded a faster increase in total new business during September.
Demand strengthened across both monitored sectors, though the more pronounced acceleration was seen at goods producers. Here, sales growth remained above that recorded by services companies and hit a seven-month high.
Service providers indicated that marketing efforts helped boost order intakes, with mentions of stronger demand for properties, transport services and new travel bookings featuring in the qualitative part of the survey.
Goods producers, meanwhile, reported strengthening demand for aluminium products, electronic items, food, pharmaceutical goods and new models in general, showed the data.
Moreover, aggregate employment rose solidly in September, as companies continued to add to staffing capacity amid sustained growth of output and new orders. Job creation was recorded in both the manufacturing and service sectors, with rates of expansion broadly similar.