While the current year has been a historic year in the investment domain, the private sector of the country too has reason to cheer as 2024 is moving towards a close. HSBC Flash India Composite Output Index, which can be regarded as a composite gauge of the country’s manufacturing and service sectors, has climbed to 60.7 in December. The index was at 58.6 in November.
According to reports, this is a most robust rise since August this year. The HSBC data has been compiled by S&P Global. According to analysts, the jump was attributable to rise in production, clinching new orders and employment generation – all of which was triggered by rising demand in the domestic markets.
Is service sector growing in India
According to the report, the services sector remained the main driver of growth. Different service providers used the strong demand as tailwinds in both domestic and global markets. December also marked a welcome rise in new hirings. Indian private sector companies generated employment, both permanent and temporary, at the fastest rate in the history of the survey, said reports. Work backlogs also rose fast since May 2024. Backlogs of work rose at their sharpest rate since May 2024, for which new hirings became necessary.
Current state of manufacturing in India
Reports also indicated that Indian goods and services faced rising demand in domestic and international orders since July. The export sector became vibrant with manufacturing leading in export performance. “The modest rise in the manufacturing PMI in December was largely supported by gains in current production, new orders, and employment. Domestic orders saw an accelerated expansion, indicating improved growth momentum. At the same time, input cost pressures persisted, prompting manufacturers to raise selling prices,” Ines Lam, economist at HSBC, was quoted as saying.
According to reports, food, freight, and labour remained a challenge with cost pressures. Notwithstanding these pressures, business optimism rose for two months on the trot and reached the highest since September 2023.
The HSBC Flash India Composite Output Index is a gauge that measures the changes month on month in India’s manufacturing and service sector output and, therefore, is largely an index for private sector activity. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
