New deals propel biz activity to 4-mth high

New Delhi: India’s business activity surged to a four-month high in January with both manufacturing and services recording a robust growth, according to a private sector survey released on Wednesday.

HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, went up to 61.0 in Jan this year, up from December's final reading of 58.5, the highest since September 2023.

The index has now been above the 50-mark that separates expansion from contraction for the 30thconsecutive month.Service providers noted a stronger increase in activity than manufacturers, but growth accelerated in both cases keeping the country on course as the world’s fastest growing major economy, according to the report.

The manufacturing PMI rose to 56.9 in January from 54.9 last month. Activity in the dominant services industry also accelerated at a sharper rate, with its PMI rising to 61.2 this month from 59.0 in December.

“Survey participants mainly attributed the upturn to favourable economic conditions, demand strength and ongoing improvements in new business inflows.