India's business activity expands at fastest rate in March: HSBC Flash India PMI

21 Mar 2024 Evaluate

India's business activity expanded at the fastest rate in March, with the strongest increase in private sector output, amid a pick-up in growth at goods producers. Besides, buoyant demand conditions fuelled growth, with aggregate sales rising at a sharp and accelerated pace. The manufacturing industry led the upturn with the fastest expansions in factory orders and production in nearly three-and-a-half years.

According to the report, the headline HSBC Flash India Composite PMI Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -- rose to 61.3 in March. Moreover, rising from 60.6 in February, the latest figure indicated a sharp rate of expansion that was the strongest since July 2023.

Besides, new business intakes at the composite level rose for the thirty-second straight month in March. The pace of growth was substantial and stronger than that recorded in February. As was the case for output, goods producers led the upturn in sales with the fastest expansion in nearly three-and-a-half years. The report also noted that total order volumes received a considerable boost from international sales.

New export orders across the private sector expanded at the fastest pace in seven months, with quicker increases evident at both manufacturing firms and their services counterparts. Meanwhile, the Flash PMI survey pointed to a renewed improvement in business optimism during March. Goods producers were more upbeat about the year-ahead outlook than service providers, as has been the case since last November.