India private sector growth continues to grow strongly in November

Surging new business gains and export sales boosted output growth across India's private sector economy in November, the latest HSBC flash PMI survey compiled by S&P Global showed. Rising capacity pressures, evidenced by increasing backlogs, prompted companies to ramp up hiring efforts, which was supported by an overall improvement in business activity expectations.

However, this strengthening of operating conditions came amid intensifying cost pressures and the steepest upturn in selling prices since February 2013. Manufacturers experienced faster expansions in new orders and output than services firms, but it was among the latter where job creation was most pronounced. The latest increase in service sector employment was the fastest since the survey began in December 2005.

The HSBC Flash India Composite Output Index a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors rose from a final reading of 59.1 in October to 59.5 in November, indicating a sharp rat of expansion that was the strongest in three months and above its long-run average. Growth ticked lower in the manufacturing industry whilst picking up in services, although the former outperformed again.

At 57.3 in November, down only marginally from 57.5 in October, the HSBC Flash India Manufacturing PMI a single figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases highlighted another substantial improvement in the health of the sector

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