BENGALURU- India’s business activity extended its robust growth streak in August as a stronger services industry offset a slight slowing in manufacturing expansion, according to a survey that indicated price pressures also were easing.
Those findings suggest India will hold on to its title of fastest-growing major economy over coming quarters despite expectations of a slowdown in the global economy.
HSBC’s flash India Composite Purchasing Managers’ Index compiled by S&P Global, dipped slightly to 60.5 in July from last month’s final reading of 60.7, in line with a Reuters poll forecast.
August marked over three years of expansion, the longest such run since June 2013. The 50-level separates growth from contraction.
“India’s flash composite PMI slipped slightly in August, though it remained significantly higher than the historical average,” noted Pranjul Bhandari, chief India economist at HSBC.
“Although new order growth for the manufacturing sector slowed to the weakest since February, the pace of expansion remained sharp, indicating continued strong demand and favorable market conditions.”
