Mumbai: India’s business activity witnessed modest growth in October after a moderate slowdown in September. Initial estimates show an increase in business activity due to strong demand in the manufacturing sector. The pace of job creation was also the highest seen since February 2006, a survey found.
The HSBC Composite Purchasing Managers’ Index (PMI) for the current month, compiled by S&P Global, came in line with preliminary estimates at 58.60, down from a ten-month low of 58.30 in September.
A PMI above 50 is said to be expanding in that area. The composite index remained above 39 for the 39th consecutive month in October. This is the first time since June 2013 that there has been a continuous expansion.
Activity in the manufacturing sector increased in October. HSBC economist Pranjul Bhandari said some components of the PMI picked up pace in October after being sluggish for the last two-three months.
New orders, both domestically and for exports, have grown rapidly, indicating a good outlook for manufacturing sector companies for the remainder of the current year.
The preliminary PMI for October for the manufacturing sector stood at 57.40 while for the services sector the figure stood at 57.90.
Government sources recently claimed that around $17 billion of investment has come into the country since the launch of the Production Linked Incentive (PLI) scheme, production worth Rs 11 trillion has been generated and one million jobs have been created.
International demand for Indian products also increased in October, leading to increased hiring by companies. According to the survey report, the number of employee recruitment in the current month has been at the highest level in eighteen and a half years.
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