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India’s economic activity was little changed in November as services picked up slightly while manufacturing moderated, early surveys showed.
The manufacturing purchasing managers’ index slid to 57.3 from 57.5 in October, while the services index rose to 59.2 from 58.5, HSBC Holdings Plc said in a statement Friday. The composite index ticked up slightly to 59.5 from 59.1.
The indexes are based on preliminary surveys and may be revised when final PMI figures are released next month. A reading above 50 indicates expansion in economic activity, while a print below that indicates contraction.
Despite the easing in manufacturing, the sector “managed to outperform expectations,” Pranjul Bhandari, chief India economist at HSBC, said in a statement. The pickup in services activity, fueled by “strong end-demand and improving business conditions” pushed the employment index for the sector to the highest level since December 2005, she said.
Price pressures are rising for raw materials used by manufacturers, along with food and wage costs in the services sector, the PMI figures showed. Private sector companies in India hiked their selling prices again during November, HSBC said.
India’s economy has been showing some signs of weakness, with consumer spending in urban areas slowing. Economists have downgraded their forecasts for gross domestic product growth for the year through March 2025, with investment banks like Goldman Sachs Group Inc. predicting an expansion of 6.4% for the financial year.
--With assistance from Anup Roy.
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