India's private sector witnessed its most significant expansion in four months this December, as highlighted by the accelerated output growth across both manufacturers and service providers, according to preliminary data from S&P Global released on Monday.
The HSBC composite output index climbed to 60.7 in December from 58.6 in November, signaling expansion with figures above the 50.0 threshold.
The manufacturing Purchasing Managers' Index (PMI) increased to 57.4 from its previous mark of 56.5, while the services PMI advanced to 60.8 from 58.4 the previous month.
On a composite level, new orders experienced their most substantial growth since July, with service providers spearheading the increase in sales. The robust global demand for goods and services continued to drive total sales growth.
Companies further expanded their operational capacities by hiring additional staff, resulting in record growth across both manufacturing and service sectors, with employment growth reaching a new high.
Backlogs rose at a rate jointly the fastest since August 2022, with service providers recording a swifter expansion in outstanding business volumes compared to manufacturers.
Business optimism strengthened, reaching its highest level since September 2023. Firms increased their input purchasing, which led to a rise in pre-production inventories. However, inventories of finished goods fell into contraction. Data revealed that cost pressures within India's private sector eased from September's 15-month peak, with inflation rates remaining broadly similar across both sectors.
While companies increased their selling prices, the charge inflation rate eased from November's near 12-year high. Official figures today showed that wholesale price inflation softened to 1.89 percent in November from 2.36 percent in October. Inflation was anticipated to decelerate to 2.2 percent. Food prices rose by 8.63 percent annually, compared to 8.84 percent the previous year.
The material has been provided by InstaForex Company -
www.instaforex.com
