2024 ends on positive note as business activity hits 4-mth high

India's business activity touched a four-month high of 60.7 in December, ending the year on a positive note with a rise in new business intakes, according to a private survey released on Monday.

The HSBC Flash India Composite Output Index, compiled by S&P Global, increased from November's reading of 58.6. On average, the reading was 60.4 in 2024, compared with 59.6 in 2023.

Both goods and services sectors reported increased output.


The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services PMI indices.

The HSBC Flash India Manufacturing PMI rose to 57.4 from a two-month low of 56.5 in November.

"The small rise in the headline manufacturing PMI in December was mainly driven by gains in current production, new orders and employment. The expansion in new domestic orders quickened, suggesting a pickup in growth momentum in the economy," said HSBC economist Ines Lam.

The HSBC Flash India Services PMI Business Activity Index climbed to 60.8 from 58.4.

Continued international demand for goods and services bolstered sales, the survey highlighted.

Hiring remained strong across manufacturing and service sectors. "Anecdotal evidence indicated that panellists hired a combination of permanent and temporary workers," the survey mentioned. Cost pressures eased from the 15-month high in September across the private sector. Where costs increased, companies cited rising expenses on food, freight, labour, leather and rubber.

Although the rate of charge inflation slowed from November's 12-year high, it remained above the series trend, according to the survey.

Manufacturing firms increased input purchasing in December, it added. "Sustained increases in input costs have pushed manufacturers to continue to raise selling prices. The output price index rose to its highest level since February 2013," said Lam.