At 60.7 in July, the HSBC Flash India Composite Output Index was little-changed from June's final print of 61.0 and therefore signalled another substantial rate of growth. Moreover, the headline figure remained well above its long-run average of 54.8.

Operating conditions across India's private sector continued to improve in July, with data showing sharp expansions in total sales, export orders and output levels.

On the price front, there were quicker increases in both input costs and output charges. While business confidence remained positive, it retreated to its lowest mark in close to two-and-a-half years as some panellists were concerned about competition and inflationary pressures. Subsequently, job creation eased to the weakest rate in 15 months.

Goods producers registered a faster increase in output than service providers, as the pace of expansion picked up to the strongest since April 2024. There was a softer upturn in services activity during July, though growth remained sharp by historical standards.

The HSBC Flash India Manufacturing PMI rose from 58.4 in June to 59.2 in July, its highest reading in close to 17-and-a-half years and indicative of a robust improvement in the health of the manufacturing industry.

As was the case for output, new orders increased to a greater extent in the manufacturing industry than in the service economy, as growth quickened in the former whilst it eased in the latter. At the composite level, overall sales expanded at a sharp pace that was the fastest in exactly one year.

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