Survey: India’s business activity at three-month high in November
New Delhi|India’s business activity reached a three-month high in November due to improvement in the service industry and record employment generation. However, output inflation reached a 12-year high. According to the survey, economic growth is likely to increase further in the current festive quarter. It is expected to accelerate due to the surge in private consumption.
According to S&P Global, the HSBC Purchasing Managers’ Index (PMI) stood at 59.1 in October. November increased to 59.2. Levels below 50 in PMI show weakness in turnover. Pranjul Bhandari, HSBC’s chief economist in India, said business activity performed better despite growth in services and a slight slowdown in manufacturing.
The PMI of the services sector rose to 59.2 in November. Highest since August. The manufacturing sector index declined to 57.3 from 57.3 in October. Exports remained at the top for four months due to improvement in foreign demand for services and manufacturing sectors. Price pressure on food and wage costs is increasing in the service sector with raw materials used by manufacturers.
