(MENAFN- KNN India) New Delhi, Apr 23 (KNN) India's business activity expanded at the fastest pace in nearly 14 years this month, driven by robust demand, according to an HSBC survey released on Tuesday.
The survey also showed easing input inflation and positive job growth, suggesting that India is well-positioned to remain the fastest-growing major economy this year.
HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 62.2 this month from March's final reading of 61.8.
The reading has consistently been above the 50-mark separating expansion from contraction since August 2021.
The strong expansion was led by the services sector activity, with the index rising to a three-month high of 61.7 from March's 61.2, thanks to accelerating new business – a key gauge for demand.
The manufacturing PMI, on the other hand, remained strong at 59.1, similar to March's level.
Both output and new orders for goods continued to grow at a robust pace, albeit slightly slower than the previous month.
Overall international demand was solid, and the composite sub-index rose to the highest since it was added to the survey in September 2014.
The strong sales improved the business outlook for the coming 12 months from a four-month low in March.
Efforts to meet rising demand supported job growth, which was the most pronounced in manufacturing, where it increased at the fastest pace in one-and-a-half years.
However, employment generation among services firms was slower than in March.
Meanwhile, input costs cooled for both goods producers and their services counterparts, but demand strength enabled passing on expenses to customers. A stronger increase in output costs among manufacturing firms contrasted with a slower rise in the services industry.
"Strong performance in both the manufacturing and service sectors, led by increased new orders, resulted in the highest composite output index since June 2010," noted Pranjul Bhandari, Chief India Economist, HSBC.
He mentioned, "Manufacturing margins improved in April as firms were able to pass on higher prices to customers due to strong demand conditions."
(KNN Bureau)
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