India’s Economy Grows Faster in October
The HSBC Flash India Composite PMI Output Index increased to 58.6 in October, up from 58.3 in September, indicating a faster expansion of India’s economy. This marks the thirty-ninth consecutive month of growth, surpassing the long-term average of 54.7. The growth was driven by increases in both manufacturing and services activities.
Manufacturing Sector Leads Growth
The manufacturing sector showed significant improvement, with the HSBC Flash India Manufacturing PMI rising to 57.4 from 56.5. The Manufacturing Output Index also increased to 60.1, supported by a sharp rise in new orders. Export sales grew faster, reflecting better international demand for Indian goods and services.
Services Sector Progress
The services sector also progressed, with the Business Activity Index climbing to 57.9 from 57.7. Pranjul Bhandari, Chief India Economist at HSBC, noted that the manufacturing industry regained growth momentum in October, with new orders and export orders expanding at faster rates.
Employment and Inflation Trends
Hiring surged, especially in the service sector, reaching an 18-and-a-half-year high. Manufacturing also saw job growth, contributing to the strongest employment increase since February 2006. Input cost inflation rose to a three-month high, with manufacturers raising prices to offset higher costs.
Business Confidence
Despite inflationary challenges, business confidence remained above the long-term average, with companies expecting favorable demand conditions. Manufacturing sentiment improved, while optimism in the services sector slightly declined.
Doubts Revealed
HSBC -: HSBC is a big bank that operates in many countries, including India. It provides financial services like saving money, giving loans, and helping with investments.
Flash PMI -: Flash PMI stands for Flash Purchasing Managers’ Index. It’s a quick report that shows how well the economy is doing by looking at things like manufacturing and services activities.
Composite PMI Output Index -: The Composite PMI Output Index is a number that tells us how much the economy is growing. A number above 50 means the economy is expanding, and a number below 50 means it’s shrinking.
Manufacturing sector -: The manufacturing sector includes businesses that make products, like cars, clothes, and electronics. It’s an important part of the economy because it creates jobs and products we use every day.
Export sales -: Export sales are when a country sells goods to other countries. It’s important because it brings money into the country and helps the economy grow.
Input cost inflation -: Input cost inflation means the prices of materials and resources needed to make products are going up. This can make things more expensive for businesses and consumers.
Business confidence -: Business confidence is how optimistic or positive businesses feel about the future. When confidence is high, businesses are more likely to invest and hire more people.