Blitz Bureau
NEW DELHI: India’s economic activity expanded in July, fueled by a jump in services and a pickup in manufacturing, a flash survey by HSBC Holdings showed.
The services purchasing managers’ index (PMI) rose to 61.1 from 60.5 last month, while the manufacturing purchasing managers’ index increased slightly to 58.5 from 58.3 in June. That drove the composite PMI to a three-month high of 61.4 from 60.9 the previous month.
The indexes are based on preliminary survey results and are a signal of business confidence in the economy. A reading above 50 indicates expansion compared with the previous month, while a print below that indicates contraction in activity.
“The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its long-run average,” Pranjul Bhandari, chief India economist at HSBC, said in a statement. “Companies turned more optimistic in July, following a moderation in business confidence in June.”
India is the fastest-growing major economy in the world, posting growth of more than 8 per cent in the past fiscal year. The central bank predicts expansion of 7.2 per cent this year, although the government this week gave a more cautious outlook, predicting 6.5 per cent-7 per cent in the year through March 2025.
“New orders placed with private sector firms rose sharply in July,” HSBC said. That meant that the aggregate employment index expanded at one of the strongest rates, the data showed, with manufacturing firms reporting higher levels of new jobs.
