Private sector output in India increased at the fastest pace in six months during February, amid a quicker expansion in services activity.
The latest HSBC ‘flash’ PMI data also indicated stronger growth of aggregate sales, which exerted upward pressure on operating capacities and prompted companies to step up hiring.
Price indices moved in opposite directions, with a slowdown in cost inflation contrasting with a faster upturn in prices charged for goods and services.
At 60.6 in February, up from a final reading of 57.7 in January, the HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors – highlighted the fastest rise in private sector activity since August 2024.
The rate of growth was also well above its long-run average. Service providers noted a quicker increase than manufacturers, and one that was the strongest in just under a year.
With the majority of the HSBC Flash India Manufacturing PMI sub-components retreating since January, the index slipped from 57.7 in January to 57.1 in February.
The latest reading was nevertheless above its long-run average of 54.1 and consistent with a robust improvement in the health of the sector.