India’s private sector output growth hits 4-month high in December

Mumbai

India’s private sector output growth reached its highest level in four months during December, driven by stronger performance in both the manufacturing and services sectors, according to the latest HSBC ‘Flash’ PMI data compiled by S&P Global. The HSBC Flash India Composite Output Index rose to 60.7 in December, up from 58.6 in November, signaling the fastest growth rate since August. The report highlighted quicker increases in output for both goods producers and service providers, supported by a sharp uptick in new business intakes. Ines Lam, Economist at HSBC, noted that the rise in the headline Manufacturing PMI, which improved to 57.4 from November’s 56.5, was fueled by gains in current production, new orders, and employment. “The expansion in domestic orders reflects a pick-up in growth momentum within the economy,” she added. Job creation reached its highest survey-record level, buoyed by a faster increase in pending business volumes and optimism for output growth in 2025. Cost pressures moderated in December, contributing to some relief on inflation. Demand for Indian goods and services strengthened, with new orders registering their sharpest increase since July. Service providers led sales growth, though the manufacturing sector also showed substantial improvement. The upbeat data reflects improving economic conditions, rising domestic demand, and robust business confidence as India closes out the 2024 calendar year on a positive note.