India's Economy Grows Rapidly in January; HSBC Flash PMI Hits 4-Month High

ENA Economy 2024-01-25 17:42:08 New Delhi, Jan 25 (KNN) India's economy demonstrated robust growth in January, with the HSBC Flash PMI reaching a four-month high. Private sector business activity expanded significantly, as reflected in the HSBC flash India Composite Purchasing Managers' Index (PMI), which surged to 61 from 58.5 in December. This marks the highest level since September and places India among the fastest-growing major economies. Service providers noted a stronger increase in activity than manufacturers, but growth accelerated in both cases, HSBC said in the survey, released on Wednesday. The Reserve Bank of India (RBI) had revised its growth forecast to 7 per cent for the fiscal year in December, citing higher-than-anticipated growth in the initial quarters. The economy grew at a faster pace in January, led by stronger manufacturing output, as well as more robust business services activity, said Pranjul Bhandari, Chief India Economist at HSBC. New orders rose at a faster pace than a month ago, and within that, international orders were stronger than before. Input prices rose quickly, but output prices were raised to a smaller extent, he added. The HSBC Flash India Manufacturing PMI rose to 56.9 in January from 54.9 in December, and the Services PMI Business Activity Index increased to 61.2 from 59. Factors contributing to this growth, as per the survey participants, include favourable economic conditions, strong demand, and continuous improvements in new business inflows. Indeed, aggregate sales increased at a sharp pace in January, and one that was the fastest in six months. Both manufacturing firms and their services counter-parts recorded quicker rates of expansion in new orders, the survey said. The most recent flash PMI figures, derived from a survey of 400 manufacturers and 400 service providers, come after data revealed a strong 7.6 per cent expansion in the Indian economy during the second quarter. This growth was bolstered by heightened government expenditures and impressive performances in manufacturing, mining, and construction. Despite high inflation, a moderation in exports, and a fall in core sector growth, the flash PMI numbers indicate sustained economic expansion. Retail inflation rose to 5.69 per cent in December, exceeding the RBI's target but remaining within the central bank's tolerance range. India's merchandise trade deficit fell to USD 19.8 billion in December, and the survey highlighted increased cost pressures, leading to marginal adjustments in selling prices. Businesses responded by hiring more workers as operating capacities faced pressure and business confidence improved, the survey noted. (KNN Bureau) 36431 https://knnindia.co.in/news/newsdetails/economy/indias-economy-grows-rapidly-in-january-hsbc-flash-pmi-hits-4-month-high 2024-01-25 17:42:08 knnindia.co.in India's Economy Grows Rapidly in January; HSBC Flash PMI Hits 4-Month High