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Economic growth across India's private sector continues to strengthen in April: HSBC Flash India PMI
Apr-23-2024

The economic growth across India's private sector continued to strengthen in April, as positive demand trends fuelled new business intakes and output. The manufacturing industry led the latest upturn, as was the case in March, although softening growth at goods producers compared with accelerations at service providers.

The headline HSBC Flash India Composite PMI Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -surged to 62.2 in April from 61.8 in March, indicating the fastest rate of increase in aggregate business activity since mid-2010. According to the HSBC Flash India PMI data, sustained increases in new orders added pressure on the capacity of manufacturing firms and their services counterparts, which in turn underpinned recruitment. Jobs growth was notably stronger among the former. 

On the price front, input cost inflation receded at both manufacturing companies and their services counterparts, with the latter noting the faster rise. The labour costs were the main factor behind rising expenses at service providers. At the composite level, the rate of increase was below its long-run average. Finally, the latest results showed a pick-up in business confidence during April. The composite Future Output Index rose from March's four-month low and was above the series average (since April 2012). 


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