India's Private Sector Growth Slows In September, PMI Falls To 59.3: HSBC Survey

New Delhi, Sep 23 (KNN) According to a recent survey conducted by HSBC, India's private sector economy experienced a deceleration in September 2024, primarily due to reduced business activity in both manufacturing and services sectors.

The flash composite Purchasing Managers' Index (PMI), a key indicator of economic health, decreased to 59.3 in September from an upwardly revised 60.7 in August.

This marks the lowest figure for 2024, although it remains above the 50-point threshold that distinguishes expansion from contraction, a position it has maintained for 38 consecutive months.

HSBC Chief India Economist Pranjul Bhandari noted that while the pace of growth has moderated, it continues to surpass long-term averages.

The survey highlighted ongoing robust growth across India's private sector, albeit with output and new orders rising at the slowest rates observed this year.

Employment trends showed positive momentum, with job creation accelerating slightly compared to August and remaining above the series average.

The service sector, in particular, recorded its most substantial increase in employment since August 2022, responding to strong growth in new orders.

Inflation indicators presented a mixed picture. Input cost inflation in the private sector saw a marginal uptick from August, with both manufacturing and services sectors reporting slightly faster increases.

However, output price inflation rates remained relatively subdued, with service providers implementing the slowest price hikes in over two and a half years.

The survey also noted continued expansion in manufacturing purchasing activity and inventory levels, supported by timely supplier deliveries.

The flash PMI data, which captures 75-85 per cent of the total 800 survey responses, precedes the final September PMI figures.

The manufacturing PMI is expected to be released on October 1, with projections indicating it will hold steady at 56.5.

The services and composite PMI data are scheduled for release on October 4.

This report provides valuable insights into the current state of India's economy, indicating a moderation in growth while maintaining expansion across key sectors.

(KNN Bureau)