India's Private Sector Sees Strong Growth in Nov Amid Rising Export Sales

India's private sector economy saw a surge in output growth in November, driven by strong gains in new business and export sales, according to the latest HSBC Flash PMI survey compiled by S&P Global. Rising capacity pressures, reflected in increasing backlogs, led companies to accelerate hiring, supported by improved business activity expectations.

Despite the positive growth, companies faced rising cost pressures, with selling prices experiencing the steepest increase since February 2013. Manufacturers reported faster growth in new orders and output compared to services firms, though job creation was most notable in the services sector, where employment rose at the fastest rate since the survey's inception in December 2005.

The HSBC Flash India Composite Output Index, which tracks the combined output of India's manufacturing and service sectors, rose from 59.1 in October to 59.5 in November, indicating a robust expansion that marked the strongest growth in three months and remained above the long-term average. While growth in manufacturing eased slightly, the services sector saw an uptick, with manufacturing still outperforming.

The HSBC Flash India Manufacturing PMI, a snapshot of factory business conditions, stood at 57.3 in November, down just slightly from 57.5 in October, signaling continued strong improvement in the sector’s health.