India’s private sector activities recovered a bit in April from the last month but remained in contraction mode as the HSBC India Composite Output Index, which maps both services and manufacturing remained below the crucial 50 mark, which separates growth from contraction.
While the HSBC India Composite Output Index, which maps both services and manufacturing, increased from 48.9 in March to 49.5 in April, the Services Purchasing Managers' Index rose to 48.5 in April from 47.5 in March.
“While the Business Activity Index improved, it remained below the water line. This points to still subdued service sector activity,” HSBC Chief Economist for India & Asean Leif Eskesen said.
According to survey participants, a difficult economic climate, combined with the elections and a further drop in new orders had all contributed to the latest fall in business activity.
This index is prepared on the basis of a survey among purchasing managers of over 800 manufacturing and services sector companies.
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