New Delhi: India's private sector activity reached a new record high in August. Due to a surge in new orders, the HSBC Flash India Composite PMI Output Index climbed to 65.2. Meanwhile, the Services PMI was recorded at 65.5, which is the highest level since the index began in December 2005, even surpassing the growth in the manufacturing sector. In July, the Composite PMI stood at 61.1, while in August 2024, it was 60.7.
Service Sector Leads the Way
The services sector saw the strongest growth. HSBC India’s Chief Economist Pranjul Bhandari said that the Services PMI reached an all-time high due to a rise in both domestic and export business orders.
Manufacturing Sector Also Strong
The manufacturing sector also showed strength. In August, the Manufacturing PMI rose to 59.8, up from 59.1 in July. This is the strongest performance for the manufacturing sector since January 2008. According to Pranjul Bhandari, the Manufacturing PMI is close to reaching the 60 mark due to rising domestic demand.
Exports Also Driving Growth
Although there was no major change in export orders compared to July, the global demand has reached its highest level since 2014. Especially from Asia, the Middle East, Europe, and the US, there has been a notable increase in orders.
