Private sector output rises for eleventh month running: HSBC Survey

 The Dollar Business Bureau Business activity in the Indian private sector economy expanded for the eleventh consecutive month in March. Adjusted for seasonal influences, the headline HSBC India Composite PMI Output Index fell marginally from 53.5 in February to 53.2 in March, indicating a marked rate of growth, said a HSBC Survey. Whereas manufacturing production expanded at an accelerated pace, services activity growth moderated. The seasonally adjusted HSBC India Services Business Activity Index posted 53.0 in March (February: 53.9). The latest reading was indicative of a moderate rate of expansion that was slightly weaker than in the prior month. Sources highlighted sustained new business growth. Output rose in four of the six broad areas of the service economy, the exceptions being Financial Intermediation and Hotels & Restaurants. March saw the level of new business placed with Indian services companies increase. Although solid, the rate of expansion eased since the prior month, the report said. Manufacturers, meanwhile, recorded a stronger increase in order book volumes. Across the private sector as a whole, incoming new work grew at a solid pace. On a seasonally adjusted basis, service sector employment rose during March. This was an improvement from the broadly unchanged levels recorded in February. In the manufacturing economy, staffing levels stabilised. According to survey respondents, output charges were raised in response to higher costs. Nonetheless, the rate of inflation was only slight and much weaker than that seen for costs. Service providers remained upbeat towards the prospects for business activity in 12 months’ time. Over 25% of survey members anticipate output growth over the course of the next year, citing strengthening demand conditions, the report concluded.    

This article was published on April 6, 2015.