Blitz Bureau
NEW DELHI: India’s private sector activity remained on a growth trajectory in July, backed by manufacturing output and rising export orders, despite a moderation in services activity, according to the HSBC Flash India PMI data released on July 24.
The seasonally adjusted HSBC Flash India Composite PMI Output Index came in at 54.3 in July from 57.1 in June. A reading above 50 indicates growth in business activity, the data showed.
The moderation was primarily driven by the services sector, where business activity eased to 53.1 from 57.4 in June.
In contrast, manufacturing output improved, with the Manufacturing PMI Output Index rising to 57.0 from 56.3 in the previous month, although the headline Manufacturing PMI edged down to 53.9 from 54.2.
According to the data, growth in output and new business softened amid increasingly challenging market conditions, competitive pressures, order cancellations, fewer client enquiries and shortages of key raw materials.
Despite the moderation in domestic demand, export orders continued to strengthen, with the pace of growth accelerating across both manufacturing and services firms. At the composite level, international sales expanded at the fastest pace since March.
“The renewed tensions in the Middle East have once again resulted in firms building buffers to manage the uncertainties around the longevity of the supply-side shock. Finished goods and input inventories increased alongside a pick-up in purchasing volumes,” said Pranjul Bhandari, Chief India Economist at HSBC.
