In November, India's private sector activity surged at its quickest in three months, even amid escalating cost pressures, according to preliminary survey data from S&P Global released on Friday.
The initial HSBC composite output index climbed to 59.5 in November, up from 59.1 in October. A reading above 50 signals expansion in the sector.
The survey indicated a notable pickup in service activity during November, while growth in manufacturing experienced a slight deceleration.
The services purchasing managers' index rose to 59.2 in November, compared to 58.5 in October. Meanwhile, the manufacturing purchasing managers' index decreased marginally to 57.3, from 57.5 in the previous month.
New orders saw significant growth in November, driven by robust demand conditions. Goods producers reported faster growth compared to service providers. Export demand was favorable, with benefits observed globally across regions including Asia, Europe, and the Americas.
Companies embarked on increased hiring initiatives, with job creation reaching its highest pace since composite data became available in December 2005.
Concerning pricing, input cost inflation reached a level not seen in over a year. Consequently, businesses elevated their selling prices at the quickest rate in nearly 12 years, enabled by strong demand that allowed them to transfer added cost burdens to clients. Notably, charge inflation rates were similar across both sectors.
Looking forward, business confidence showed a rebound in November. The future output index rose to a six-month high, supported by effective marketing efforts and new client inquiries, promising a favorable business outlook. Positive demand trends are expected to bolster growth in the coming year.
