PMI: private sector output and business expectations improve
July has been a good month for the Indian economy, with the Nikkei India Composite Output PMI, a gauge of private sector output both in manufacturing and services, climbing to a three-month high. Will the momentum be sustained? New orders in manufacturing as well as new business in services have shown good growth. Perhaps more importantly, the business expectations index in the services sector is at its highest since March. Much is expected from good monsoon, the pay revision bonanza for government employees and encouraging news on the goods and services tax (GST). The chart has the details.