India expanded rapidly in January, with services activity reaching a six-month high and manufacturing ramping up pace, according to a new flash poll by HSBC Holdings.
The purchasing managers index for services increased to 61.2 from 59 in December, while the manufacturing PMI reached a four-month high of 56.9, according to HSBC. The composite PMI rose to 61. The indexes are based on preliminary survey results; full PMI data will be issued next week. A value greater than 50 implies that activity has increased in comparison to the previous month, whilst a reading less than 50 indicates contraction.
"New orders increased faster than a month ago, and international orders were stronger than before," Pranjul Bhandari, chief India economist at HSBC, said in a statement.
India is one of the world's fastest-growing major economies, with the government forecasting a 7.3% expansion in the fiscal year ending March. India's central bank governor has stated that growth will likely reach 7% in the coming fiscal year as well.
Services industries account for more than half of India's GDP, however manufacturing activity has recently picked up, boosting economic growth in the July-September quarter.
