India Private Sector Growth Eases To 6-month Low

(RTTNews) - India's private sector activity expanded at the weakest pace in six months in November amid a slower rise in factory production, flash survey results from S&P Global showed on Friday.

The HSBC flash composite output index dropped to 59.9 in November from 60.4 in October. However, a score above 50 indicates expansion in the sector, and it remained well above its long-run average of 54.9. The expected reading was 60.0.

The growth in both new orders and business activity retreated to their slowest since May, the survey said.

Factory activity logged the slowest improvement in nine months as the Manufacturing PMI declined to 57.4 in November from 59.2 in October. The score was expected to fall to 59.0.

Meanwhile, the services Purchasing Managers' Index climbed to 59.5 in November from 58.9 in the previous month.

International sales received by Indian private sector companies grew at a marked pace, but that was the weakest since March, linked to fierce competition in global markets and the offer of cheaper products and services elsewhere.

Employment growth eased to the lowest level in over a year-and-a-half due to the combined effect of slower sales growth and falling backlogs.

On the price front, input price inflation softened to the weakest level in nearly five-and-a-half years, while selling prices rose at the slowest rate in eight months.

Looking ahead, private sector companies remained positive about output growth over the year ahead, though the overall level of confidence fell to its lowest since mid-2022.