(Bloomberg) -- India’s economic activity regained momentum in October, driven by an uptick in manufacturing and services sectors, a flash survey by HSBC Holdings Plc showed.
The manufacturing purchasing managers’ index improved to 57.4 in October from 56.5 in the previous month, the first jump since June. The services purchasing managers’ index rose to 57.9 from 57.7 in the previous month, while the composite index grew to 58.6 from 58.3 in September.
The indexes show business confidence in the economy and are based on preliminary surveys. The data may be revised when final PMI figures are released next month. A reading above 50 indicates expansion compared with the previous month, while a print below that indicates contraction in economic activity.
“New orders and new export orders expanded at faster rates, providing a good omen for industrial production for the remaining months of 2024,” said Pranjul Bhandari, chief India economist at HSBC, in a statement. Manufacturers’ profit margins are still under pressure as input price inflation continued to pick up pace, she said.
An improvement in the manufacturing PMI comes against the backdrop of recent evidence showing India’s world-beating growth is starting to taper off, with urban consumption slowing.
The acceleration in growth was supported by quicker increases in factory production and services activity, HSBC said. Hiring activity was more pronounced in the services sector with employment rising at the quickest pace in more than 18 years, it said.
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