MUMBAI: New business gains and higher exports helped the private sector to perform better in November leading to the composite purchasing managers index rise in the month to 59.5, a flash survey has showed amid rising inflation pressures.
The month saw accelerated job creation and services sector growth, yet inflation surging to near 14-month high in October at 6.21%. Services sector hiring is the highest since 2005.
“The flash composite output index rose from a final reading of 59.1 in October to 59.5 in November, indicating a sharp expansion that was the strongest in three months and above its long-run average,” HSBC India said on Friday.
The index combines performance in manufacturing and services sector and is based on the survey conducted among 400 manufacturing and 400 services providers. The seasonally adjusted index measures the month-on-month change in the combined output of the manufacturing and services sectors.
“Growth ticked lower in the manufacturing industry while picking up in services, though the former has outperformed again,” the survey said. While flash services PMI rose to 59.2 in November as against 58.5 in October, manufacturing PMI was 57.3 as against 57.5.
“Strong end-demand and improving business conditions pushed services sector employment to the highest level ever recorded by this indicator since December 2005. Meanwhile, price pressures are rising for raw materials used by manufacturers, as well as food and wage costs in the services space,” said Pranjul Bhandari, chief economist at HSBC India.