The reading on the index remained above the 50-mark, which separates expansion from contraction for 36th consecutive month. The flash PMI records 75-85% of the total 800 Purchasing Managers Index survey responses by services and manufacturing firms received every month.
The HSBC Flash India Manufacturing PMI was at a three-month high of 58.5 in July from 58.3 in June, signalling a historically strong improvement in the health of the sector. The HSBC Flash India Services PMI Business Activity Index was 61.1 in July as against 60.5 in June.
“The Flash Composite Output Index signalled continued robust growth in India’s private sector. The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its long-run average,” said Pranjul Bhandari, chief India economist at HSBC.As per the report, favourable market conditions and new business gains underpinned the upturn in private sector activity. There were also mentions of buoyant client appetite, enhanced technology and a greater number of events.New orders placed with private sector firms in India rose sharply in July.
Amid reports of higher material, transportation and labour costs, overall input prices rose in July. The rate of inflation was solid, faster than in June.