Updated: Dec 16, 2024 04:34:18pm
India’s PMI Reaches 60.7, Indicating Robust Economic Growth As 2024 Closes
New Delhi, Dec 16 (KNN) In a promising sign for India’s economic trajectory, preliminary survey data reveals the private sector has achieved its fastest output growth in four months, positioning the nation to conclude 2024 on a positive note.
The robust performance is underpinned by strong demand across services and manufacturing sectors, accompanied by record job creation.
The HSBC December flash India Composite Purchasing Managers’ Index (PMI) climbed to 60.7, matching August’s reading and significantly surpassing the critical 50-point threshold that separates economic expansion from contraction. This performance indicates substantial private sector growth, a pattern unseen since the global financial crisis of 2008.
While the economy experienced a softer quarterly growth of 5.4 per cent, easing inflationary pressures are expected to stimulate demand among private sector firms, potentially enhancing the economic outlook for 2025.
HSBC economist Ines Lam highlighted that the modest rise in the manufacturing PMI was primarily driven by increases in current production, new orders, and employment.
The services sector demonstrated particularly impressive momentum, with its PMI reaching a four-month high of 60.8, compared to November’s 58.4.
Manufacturing similarly showed strength, with its index rising to 57.4 from 56.5. Service providers led sales growth, with new business reaching its highest level since January and international demand for goods and services expanding.
The positive economic indicators translated into heightened business optimism, prompting companies to accelerate hiring to levels not seen since the survey’s inception in late 2005.
Both manufacturing and services sectors reported peak employment generation, signalling confidence in future economic prospects.
Inflationary pressures showed signs of moderation in December, following two months of steeper rises.
This development could provide welcome relief to the newly appointed Reserve Bank of India Governor Sanjay Malhotra, especially as consumer inflation came in lower than anticipated at 5.48 per cent.
The comprehensive data paints a picture of a resilient and dynamically growing Indian economy, with multiple sectors contributing to its continued expansion and positive momentum as it approaches the new year.
(KNN Bureau)