Surge in India's Private Sector Growth Reaches Four-Month High in December: Report
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New Delhi, December 17 (NationPress) India's private sector output growth has reached its highest point in four months in December, as per the recent HSBC 'flash' PMI data compiled by S&P Global.
This growth surge was evident in both the manufacturing and service sectors, as companies in these areas experienced a quicker uptick in new business activities, the report highlighted.
Ines Lam, an Economist at HSBC, stated: "The increase in the headline manufacturing PMI for December was primarily driven by gains in current production, new orders, and employment. The rise in new domestic orders accelerated, indicating a potential rebound in economic growth momentum."
Aggregate job creation reached a survey peak, driven by a more rapid increase in outstanding business volumes and positive expectations for output in 2025. Additionally, a slight easing in cost pressures helped to temper inflation, the report noted.
The HSBC Flash India Composite Output Index, which tracks the combined output of India's manufacturing and service sectors, recorded a value of 60.7 at the close of the 2024 calendar year. This marks an increase from a final reading of 58.6 in November, showcasing the strongest growth rate in four months. There were notable increases in output from both goods producers and service providers.
The HSBC Flash India Manufacturing PMI, a single-figure indicator of factory business conditions derived from metrics of new orders, output, employment, supplier delivery times, and inventory levels, improved from November's two-month low of 56.5 to 57.4 in December. This indicates a significant enhancement in manufacturing sector conditions, surpassing the historical average, according to the report.
Demand for Indian goods and services continued to rise in December, evidenced by a sharp increase in new orders, marking the most significant uptick since July. Service providers led this surge in sales, although growth was observed across both tracked sectors.
