India’s Private Sector Expands Most Since July

India’s private sector expanded at the fastest pace since July on broad-based growth across services and manufacturing, survey data from IHS Markit showed Monday.

The Nikkei composite output index improved to 53.0 in October from 51.6 in September. The reading highlighted the strongest expansion in private sector activity since July.

Any reading above 50 indicates expansion in the sector.

The Nikkei services Purchasing Managers’ Index climbed to 52.2 from 50.9 a month ago. The sector has remained in expansion territory for the fifth straight month.

Improved order flows supported the pick-up in output in October. Service providers continued to add to their payrolls.

The rate of cost inflation of service providers moderated from September’s ten-month high. Similarly, charge inflation at service providers cooled in October.

Although services firms retained an optimistic view towards growth prospects, confidence waned in October.

“The PMI surveys brought positive news of stronger economic growth at the start of the third quarter of FY 2018/19, together indicating a welcome rebounded in private sector expansion from September’s four-month low,” Pollyanna De Lima, principal economist at IHS Markit, said.