India’s private sector growth expanded in November but at its slowest pace in six months, with the HSBC Flash India Composite Output Index falling to 59.9 from 60.4 in October.
Though still comfortably above the 50-point threshold that separates expansion from contraction, the reading marks the lowest level for the index in six months.
The composite index, which tracks month-on-month changes in combined output across manufacturing and services, pointed to a moderation in overall growth.
The slowdown stemmed largely from a weakening in factory output, which grew at its softest pace since May. Some manufacturers reported reduced new orders during the month.
In contrast, the services sector saw a pickup, with the Flash India Services PMI rising to 59.5 in November from 58.9 in October.
Chief India Economist at HSBC Pranjul Bhandari said, “The HSBC flash manufacturing PMI eased, though the improvement in operating conditions remained healthy. The rise in new export orders matched that seen in October. However, overall new orders came in soft, indicating that the GST-led boost may have peaked. Cost pressures eased considerably, and so did prices charged.”