NEW DELHI: Economic activity expanded at a robust pace in December, mainly due to an uptick in domestic demand conditions. The HSBC Flash India PMI rose to 60.7–the highest print in four months–in December from 58.6 in November, a release by S&P Global said on Monday.
The acceleration was reflected in both the manufacturing and service sectors, as companies across the two segments welcomed a faster upturn in new business intakes, said S&P Global.
Aggregate job creation climbed to a “survey peak” amid a faster increase in outstanding business volumes and optimistic expectations for output in 2025, it said. “Meanwhile, a moderation in cost pressures somewhat curbed charge inflation.”
In December, the HSBC Flash India Services PMI Business Activity Index rose to 60.8 from 58.4 in November. And HSBC Flash India Manufacturing PMI climbed up to 57.4 from 56.5.
Ines Lam, Economist at HSBC, said that the small rise in the headline manufacturing PMI in December was mainly driven by gains in current production, new orders and employment. “The expansion in new domestic orders quickened, suggesting a pick-up in growth momentum in the economy,” she added.
S&P Global said that “improving international demand” for Indian goods and services continued to boost total sales, as seen by a sustained upturn in new export orders.
On the jobs front, with new business remaining on an upward trend, private sector firms in India continued to expand operating capacities by recruiting extra staff. The overall rate of growth climbed to a new series peak, amid record increases in both the manufacturing and service sectors, said S&P Global.
Moreover, the December’s flash data showed that cost pressures across India’s private sector receded from September’s 15-month high, broadly converging to its long-run average. “Where an increase in expenses was reported, companies suggested that food, freight, labour, leather and rubber costs rose,” noted S&P Global. Rates of inflation were broadly similar across the manufacturing and service sectors.
As a result of rising costs burdens and demand strength, private sector companies in India continued to increase their selling prices in December. “Goods producers were more aggressive in their price setting than service providers,” said S&P Global.
Source: The Financial Express
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