India’s economy expanded at the fastest rate among major economies last quarter.
Bengali language: Activity in India’s dominant services sector continued to grow at a strong pace last month thanks to a strong recovery in domestic demand, but mounting price pressures remain, a private survey showed. is a big concern.
Asia’s third-largest economy expanded at the fastest rate of any major economy last quarter, boosted by coronavirus vaccinations and stronger government spending. The economy grew 8.4% annually in the July-September quarter.
That positive momentum seems to have been largely sustained in the first two months of this quarter.
The Services Purchasing Managers’ Index, compiled by IHS Markit, fell to 58.1 in November from 58.4 in October, but last month’s growth rate was the second-best in more than a decade and much higher than the 50-point growth detached from contraction for a fourth straight month.
Excluding October, new business expanded at its fastest rate in nearly nine years in November, driven mainly by a strong recovery in domestic demand.
“The recovery in the Indian services sector has been extended to November,” said Pollyanna De Lima, chief economist at IHS. Worries about inflationary pressure weigh on confidence. Mark it.
Despite reporting the biggest increase in input costs since April, companies were only able to pass some costs on to customers, leading to further pressure on profit margins. Charged prices increased at a slower rate in November than in October.
Hiring rate was also the slowest in three months despite improving business expectations.
Adding to the concerns, the recent emergence of the Omicron coronavirus variant has raised the possibility of another blow to the economy.
However, a strong expansion in services activity coupled with strong growth in the manufacturing sector boosted the composite to a 10-year high of 59.2 in November from 58.7 in November. ten.
Mr. De Lima added: “Looking at the manufacturing and services sectors combined, the results are even more encouraging and bode well for economic activity in the third quarter of fiscal year 2021/22 through now on.
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
