India's private sector activity hits 3-month high in September
What's the story
India's private sector activity witnessed a significant improvement in September, driven mainly by a stronger manufacturing sector. The HSBC Flash India Composite Output Index climbed to 56.5 from August's final reading of 54.3, marking the fastest growth in private sector activity since June. Both manufacturing and services sectors reported an acceleration in output growth and new orders during this period.
Sectoral growth
Manufacturing PMI surges to 55.7 in September
The HSBC Flash India Manufacturing PMI surged to 55.7 in September from August's 52.8, indicating the strongest improvement in manufacturing operating conditions in seven months.
The Manufacturing PMI Output Index also rose sharply to 58.2 from 54.8, while the Services PMI Business Activity Index increased to an impressive 55.8 from last month's reading of 54.1, indicating a broad-based expansion across sectors during this period.
Demand boost
New business witnessed a sharp increase
New business witnessed a sharp increase in September, with both manufacturing and services sectors witnessing stronger demand.
Goods producers led this surge, with sales growth hitting a seven-month high.
Service providers attributed the increased order intake to marketing efforts, while reporting heightened interest in properties, transport services, travel bookings as well as software and digital solutions.
Job creation
Job creation across sectors
Employment rose significantly in September as companies continued to hire amid sustained growth in output and new orders.
The job creation was witnessed across both manufacturing and services sectors at broadly similar rates.
This is a positive sign for the Indian economy, indicating that businesses are confident enough to expand their workforce in response to increased demand.