Activity in India's private sector has slightly increased this month, with both manufacturing and services sectors facing rising costs, pushing businesses to raise prices at the fastest rate since February 2013.
Manufacturing sector growth slowed slightly, while services sector growth increased.
The HSBC Flash India Composite Output Index reached 59.5 in November, indicating overall expansion.
The Manufacturing Purchasing Managers’ Index (PMI) decreased slightly to 57.3 in November from 57.5 in October.
Despite this, manufacturing saw strong demand and rising export orders, continuing a positive trend in new orders for the third month.
The uptick in new business led to the highest level of job creation in services firms since data began in December 2005.
Inflation pressures led to higher raw material costs (e.g., aluminium, cotton) for manufacturers, and food and wage cost increases in the services sector.
Companies raised prices to manage the rising costs.
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