India Private Sector Growth Rebounds In April

(RTTNews) - India's private sector growth accelerated in April after receding in March due to the Middle East war, flash survey results from S&P Global showed on Thursday.

The HSBC flash composite output index climbed to 58.3 in April from 57.0 in March. A score above 50 indicates expansion in the sector.

The upturn in business activity was supported by capacity expansion, better demand conditions, rising intakes of new work, and tech investment.

Manufacturing led the resurgence with significant rebounds in rate of increase for output and sales. The manufacturing PMI climbed to 55.9 in April from 53.9 in the previous month.

The service sector activity also expanded at a faster pace in April, with the services PMI rising to 57.9 from 57.5 in March.

Manufacturing orders grew at the fastest pace in nine months, while services firms recorded the weakest uptick in just over a year, reportedly due to the Middle East war. New export orders received by the Indian private sector rose at a softer rate compared to March.

On the price front, Indian private sector companies faced elevated cost pressures in April, fueled by higher costs for fuel, gas, oil, and raw materials along with gas shortages pushing up their prices. However, input price inflation eased since March. As a result, the rate of output charge inflation was well below that seen for input costs.

Companies raised their workforce numbers further in April, with the rate of job creation reaching a ten-month high.