Biz activity surges to 3-mth high in Nov: Report

New Delhi: India’s business activity surged to a three-month high in November, driven by robust growth in the services sector and record job creation, according to the HSBC survey for the month.

“Services saw a pick-up in growth, while the manufacturing sector managed to outperform expectations despite a marginal slowdown from its October final PMI reading,” observed Pranjul Bhandari, chief India economist at HSBC.

HSBC’s flash India Composite Purchasing Managers’ Index compiled by S&P Global increased to 59.5 in November from 59.1 in October showing that economic activity is continuing to expand. The 50-level separates growth from contraction.

PMI for the services sector rose to 59.2 from 58.5 in November, which is the highest level since August. The manufacturing sector also registered an expansion during the month, but the pace of growth was marginally slower as the index declined to 57.3 from 57.5.

Overall domestic demand increased on the back of higher sales in the services industry which made up for slower growth in manufacturing. However, the demand for the country’s exports shot up during the month with overseas demand for services rising to a four-month high.

This has improved the business outlook for the next year as well, with overall optimism rising to the highest level in May which led to increased hiring by firms.