India's Flash Composite PMI Soars To 61.4 In July, Hiring Sees Record High Seen In Over 18 Years

This index is seasonally adjusted and helps calculate the monthly change in the combined output of the manufacturing and service sectors in the economy

Flash data typically gives an early insight into the final data.

Source : PTI

India’s private sector economy maintained a growth momentum in July as the HSBC Flash India Composite Output Index climbed to 61.4 in July, data showed. The survey, compiled by S&P Global, showed new business intakes and output continued to grow in the first month of the second quarter in the fiscal year.

In June, the Flash Composite Output Index stood at 60.9. This index is seasonally adjusted and helps calculate the monthly change in the combined output of the manufacturing and service sectors in the economy. The index value of 61.4 in July indicated the strongest expansion rate seen in three months. 

The pace of growth was also higher than the long-run average. The HSBC Flash India Manufacturing PMI was projected at 58.5 in July, up from 58.3 clocked in June. This estimate was a record high in three months. Flash data typically gives an early insight into the final data.

The data showed that the HSBC Flash India Services PMI Business Activity Index stood at 61.1 in July, up from 60.5 in June.

The index showed that backlogs of work increased, leading to a record rise in employment seen in more than eighteen years. Selling prices, specifically, climbed to a peak level, highest since February 2012.

Pranjul Bhandari, Chief India Economist, HSBC, said, “The Flash Composite Output Index signalled continued robust growth in India’s private sector. The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its long-run average. As a result, companies turned more optimistic in July, following a moderation in business confidence in June. We note that the rate of input cost inflation continued to trend higher in both sectors, which has driven firms to keep raising sales prices.”