India's private sector economy maintained its robust growth momentum in October 2024, according to the latest HSBC 'flash' PMI survey compiled by S&P Global and released on Thursday. A faster increase in new work intakes encouraged companies to expand their business activities and hire additional workers. While the overall growth momentum strengthened, price pressures also intensified. Manufacturers outperformed service providers in terms of output and sales expansion rates, and also recorded faster increases in input costs and selling charges. However, hiring was stronger in the service sector. The HSBC Flash India Composite Output Index, which measures the month-on-month change in the combined output of India's manufacturing and service sectors, posted 58.6 in October 2024. This figure remained firmly in growth territory (above 50.0) for the thirty-ninth consecutive month. Moreover, it rose from a final reading of 58.3 in September and surpassed its long-run average of 54.7. The acceleration in growth was supported by quicker increases in both factory production and services activity. The HSBC Flash India Manufacturing PMI recovered from September's eight-month low of 56.5 to 57.4 in October. This figure was consistent with a substantial improvement in the health of the manufacturing sector. "India's flash manufacturing PMI indicated that the manufacturing industry regained growth momentum in October. Several components accelerated after a modest slowdown over the past two to three months. New orders and new export orders expanded at faster rates, providing a good omen for industrial production for the remaining months of 2024." "Pranjul Bhandari, Chief India Economist at HSBC, said. "Manufacturers' profit margins are still under pressure as input price inflation continued to pick up pace. Manufacturers are trying to pass on higher costs to downstream consumers by raising output prices." Attribution: S&P Global report Subediting: Y.Yasser Download
