India Private Sector Growth Hits Record High

(RTTNews) - India's private sector activity expanded at the fastest pace on record amid sharp growth in new orders, flash survey results from S&P Global showed on Thursday.

The HSBC flash composite output index rose to 65.2 in August from 61.1 in July. A score above 50 indicates expansion in the sector.

Moreover, India's private sector economy posted its sharpest expansion since survey data were first collected in December 2005.

Manufacturers registered their strongest growth in activity since January 2008, as the Manufacturing PMI rose to 59.8 in August from 59.1 in July.

The services Purchasing Managers' Index climbed to 65.6 in July from 60.5 in the previous month.

Both manufacturers and service providers saw new order intakes rise at sharp and accelerated rates in the month, the survey said.

New business from abroad increased at the quickest pace since the composite data were first published in 2014, driven by greater workload from customers in Asia, the Middle East, Europe, and the US.

Hiring activity also expanded at an accelerated pace in July, and firms also registered their most optimistic assessment of the year-ahead outlook since March.

On the price front, input price inflation accelerated across India's private sector, linked to higher wage bills and greater raw material prices. As a result, selling prices rose to the sharpest extent since February 2013.