Private sector activity rises to six-month high of 60.6 in February

Private sector activity perfomed better in February

Private sector activity grew at its fastest pace in six months in February preliminary data released by HSBC on February 21 shows.

The HSBC Flash India Composite PMI Output Index rose to 60.6 in February from 57.7 in the previous month, as service activity logged a faster rate of growth.

“Rapid restocking around the world continues to lift new export orders. A healthy acceleration in orders and output is keeping firms optimistic about the future. Input prices eased while output prices rose at a faster pace, leading to improved margins, especially for goods producers,” said Pranjul Bhandari, Chief India Economist, HSBC.

Services activity rose to 61.1 during the month from 56.5 in January but manufacturing dipped further to 57.1 from 57.7.

Tepid manufacturing output is proving to be a concern. The unemployment data for the third quarter showed that the position remained unchanged despite a faster predicted rate of growth.

The third quarter saw more people moving away from manufacturing to services and agriculture.