New Delhi, Feb 21 : Private sector output in India increased at the fastest pace in six months during February, amid a quicker expansion in services activity, according to HSBC’s flash PMI data survey released on Friday.
The data also indicated stronger growth of aggregate sales, which exerted upward pressure on operating capacities and prompted companies to step up hiring.
Price indices moved in opposite directions, with a slowdown in cost inflation contrasting with a faster upturn in prices charged for goods and services.
The HSBC Flash India Composite Output Index – that measures the month-on-month change in the combined output of India’s manufacturing and service sectors – rose to 60.6 in February, up from a final reading of 57.7 in January. This is the fastest rise in private sector activity since August 2024.
The rate of growth was also well above its long-run average. Service providers noted a quicker increase than manufacturers, and one that was the strongest in just under a year, the report states.
Factory orders rose sharply, albeit at a softer pace than in January. The slowdown was often attributed to competitive pressures. On the other hand, service providers welcomed the steepest upturn in new business intakes since August 2024. At the composite level, the rate of growth improved to a six-month high, according to the report.
Looking ahead, private sector companies were strongly upbeat towards output prospects. The overall level of business sentiment was a tick above that seen in January, to reach its highest mark since November 2024.
The improvement in confidence was centred at goods producers. Finally, manufacturing-only data showed that companies further lifted buying levels in attempts to raise input inventories. While stocks of purchases did increase in February, holdings of finished products fell further. Concurrently, as has now been the case for a whole year, suppliers’ delivery times shortened.
The rate of inflation was moderate by historical standards, however, and retreated to a four-month low. Cost pressures were more intense at services firms than at goods producers, with the former also signalling greater outlays on food, the survey added. (IANS)