New Delhi, August 22 (KNN) According to the latest HSBC Flash India Composite Output Index, India’s private sector has recorded its 37th consecutive month of growth.

Data for August compiled by S&P Global shows a robust expansion rate that continues to exceed historical standards.

This sustained growth trend underscores the resilience of the Indian economy in the face of global challenges.

The Composite Output Index was 60.5 in August, only slightly below the 60.7 in July, but remained well above the long-term trend level of 54.6.

This indicates continued strong performance in both the manufacturing and services sectors and reflects broad-based economic strength.

Although the increase in manufacturing was smaller, it was still the main driver of the overall recovery. The HSBC Flash India Manufacturing PMI was 57.9 in August, up from 58.1 in July. This marked a three-month low but was still well above the historical average of 54.0.

This suggests that despite a slight slowdown, the manufacturing sector remains a key driver of India's economic growth.

The services sector showed a marginal improvement, with the HSBC Flash India Services PMI rising to 60.4 in August from 60.3 in July.

This recovery, albeit modest, is indicative of the continued expansion and resilience of India’s services sector, which plays a crucial role in the country’s economic landscape.

The report highlights several positive trends, including a strong increase in new orders, solid job creation and optimistic business growth prospects.

In addition, there has been a decline in both input costs and selling prices, which could potentially ease inflationary pressures and boost consumer spending.

An interesting development noted in the report is that goods producers reported the first decline in outstanding business volumes in nearly a year.

In contrast, services have continued their growth trajectory for the 32nd consecutive month, albeit at a more moderate pace. This divergence between sectors could indicate a change in dynamics within the Indian economy and should be closely monitored in the coming months.

These numbers together underscore India's economic dynamism and point to continued positive momentum despite global economic uncertainties. However, economists will be closely monitoring the slight slowdown in manufacturing and the pace of pending business accumulation in the services sector, which has hit its weakest level since February.

As India grapples with global economic headwinds, this sustained private sector growth provides a solid foundation for overall economic stability and expansion.

The consistent trend across several indicators paints a picture of an economy that is not only growing but also showing signs of resilience and adaptability in a challenging global environment.

(KNN Office)