Indias Private Sector Sees Strong Economic Activity in September, PMI Surges Past 56
Indias private sector showed robust growth in September, with a composite PMI of 56.5, indicating increased activity and confidence.
New Delhi, September 23 (Daily Kiran) : Economic activity in India’s private sector remained strong throughout September, with the composite Purchasing Managers’ Index (PMI) rising to 56.5, up from 54.3 in August. This data was released in the HSBC Flash PMI report on Wednesday.
The HSBC Flash India Composite PMI incorporates data from both the manufacturing and services sectors. According to the report, both sectors demonstrated notable growth in September, with increases in new orders and employment. Additionally, inflationary pressures eased, contributing to improved business confidence.
The data indicates that private sector activity reached its highest level since June. The relevant index has also surpassed its long-term average. Pranjul Bhandari, HSBC’s Chief India Economist, noted that the strength in manufacturing has driven the uptick in private sector activities. There has been a rapid increase in output and new domestic orders. Companies have started to build buffers to manage uncertainties stemming from renewed tensions in the Middle East.
Bhandari highlighted a surge in input purchases, with the stock index for finished goods now at its highest level in over 11 years. However, manufacturers are facing rising cost pressures, as inflation in output prices accelerates, indicating attempts to protect profit margins.
In September, there was a significant increase in new business for Indian private sector companies. Demand rose across both sectors, but it was particularly pronounced in manufacturing, where sales growth reached a seven-month high.
Service companies reported that marketing efforts contributed to new orders. The qualitative segment of the survey indicated heightened demand in property, transport services, and new travel bookings.
Manufacturers noted increased demand for aluminum products, electronics, food items, pharmaceuticals, and generally new models.
Moreover, September saw a substantial rise in overall employment, as companies continued to enhance their staffing capabilities in response to ongoing increases in output and new orders. Both manufacturing and service sectors generated jobs, with growth rates remaining nearly identical.
