India private-sector activity rises to three-month high in September, PMI shows

India’s private sector business activity climbed back to a three-month high in September as stronger demand boosted manufacturing and services, a preliminary survey showed Wednesday.

The HSBC Flash India Composite Purchasing Managers’ Index, compiled by S&P Global, rose to 56.5 from 54.3 in August, beating the Reuters poll median of 54.4. A number of above 50 signals expansion.

PMI for the manufacturing sector rose to 55.7 from 52.8, its highest level in seven months, as manufacturing activity sharply increased. The services index also improved to 55.8 from 54.1.

“Activity in the private sector gained momentum, led by stronger manufacturing. Output and new domestic orders rose at faster rates,” Pranjul Bhandari, chief India economist at HSBC, said, according to Business Standard.

But the growth of exports slowed, with new export orders rising at the slowest pace in almost three years. The hiring of professionals also slowed.

Input-cost inflation dropped to its lowest since January while business confidence about the coming year rose to a four-month high, the survey showed.