Private sector growth hits three-month high

India's private sector experienced its strongest growth in three months during September, according to a survey released by HSBC. The HSBC Flash India Composite Purchasing Managers Index (PMI) increased to 56.5, up from 54.3 in August, with a reading above 50 indicating expansion. This growth was driven by robust activity in both manufacturing and services sectors.

The manufacturing PMI reached a seven-month high of 55.7, while services activity rose to 55.8. Business confidence among firms about the year ahead also hit a four-month high. Pranjul Bhandari, HSBC's chief India economist, noted that manufacturing activity gained momentum, particularly in new orders, input purchases, and stock levels.

Service providers attributed their increased sales to marketing efforts and higher demand for property-related services, transportation, and travel bookings. However, export growth slowed, with a notable dip in exports from service firms despite a marginally stronger increase in new export business from manufacturers.