Market Report Market Report Sees Rising Activities in India
While the US remains caught in an economic stalemate and Europe struggles under the sovereign debts crisis of several of its economies, India opens the throttle: The Indian private sector activity increases at the strongets rate since five month, an HSBC report says.
Mumbai/India – Good news from India: The country's private sector grew solidly in December, with the rate of expansion the sharpest since July, says the London based banking and financial organisation HSBC. The recently issued HSBC India Composite Index – which covers both the manufacturing and service sectors – posted 54.7, up from November’s 52.3.
The seasonally adjusted HSBC Business Activity Index posted 54.2 in December, up from 53.2 in November. Posting above the 50.0 no-change threshold that separates growth from contraction, the latest reading pointed to a rise in activity in the Indian service sector that was stronger than in the previous survey period. Also the output of industrial products increased at a faster rate. Despite these positive figures, the HSBC pointed out that rates of growth remained below their respective long-run series averages.
Activity Rises, Market Report States
“Activity in the services sector picked up pace in December led by faster growth in new business, underscoring the resilience of the sector,” commented Leif Eskesen, Chief Economist for India & ASEAN at HSBC. “Despite the rebound in growth, backlogs of work only rose marginally. This probably reflected that employment crawled back into positive territory.”
Especially service companies witnessed impressive performances: New business received by Indian service companies increased for the thirty-second consecutive month in December. The rate of expansion was marked to have strengthened since November 2011. In the light of this development, also the new order growth at manufacturers also accelerated.