Blitz Bureau
NEW DELHI: India’s private sector economy expanded at its fastest pace on record in August, supported by a surge in new orders and resilient demand, according to a report. The India Composite Output Index jumped to 65.2 in August, up from 61.1 in July, HSBC said in its report. The HSBC Flash India Composite Output Index measures combined activity in manufacturing and services.
August data marked the steepest pace of growth since the survey began in December 2005, according to the report. According to the report, India’s private sector economy posted its sharpest expansion since survey data were first collected in December 2005 during August.
The acceleration was driven by one of the strongest increases in sales volumes on record, as businesses reported buoyant domestic and overseas demand. The report highlighted that strong inflows of new work from Asia, the Middle East, Europe, and the United States drove the acceleration. Meanwhile, the HSBC Flash India Manufacturing PMI rose to 59.8 in August from 59.1 in July, the highest since January 2008.
The index — which tracks new orders, output, employment, suppliers’ delivery times, and inventories — signalled a quicker improvement in factory conditions.
Meanwhile, the HSBC Flash India Services PMI Business Activity Index surged to an all-time high of 65.6, up sharply from 60.5 in July, pointing to rapid expansion in services activity,
