India’s Private Sector Activity and Price Hikes

• Private sector activity in India saw a modest increase in November, despite a 16-month high in cost pressures for both services and manufacturing players.

• Manufacturing sector growth slowed, while services growth increased.

• The HSBC Flash India Composite Output Index rose to 59.5 in November, a three-month high, from a final PMI reading of 59.1 in October.

• The manufacturing PMI cooled to 57.3 in November, marginally lower than October’s 57.5 reading.

• Goods producers saw a faster upturn in new orders for the third straight month, compared with services providers.

• The uptick in new business bolstered job creation among surveyed services firms to the highest level recorded since December 2005.

• Inflation crimped the upside as manufacturers reported higher prices for raw materials and services firms weighed in on greater food costs and higher wage bills.

• November’s initial PMI findings indicate a rebound in business confidence levels, with firms’ expectations on future output at a six-month peak.