BackPrivate sector output contracts for first time since April 2009
The HSBC India Composite Output Index falls to 48.4 in July from 50.9 in June
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Business activity in the Indian private sector contracted in July from the previous month, the first contraction since April 2009. The HSBC India Composite Output Index, which is a survey-based measure of private sector output both in manufacturing and services, went down to 48.4 in July from 50.9 in June. Any reading below 50 in the seasonally adjusted index indicates a contraction.
The Purchasing Managers’ Index (PMI) for the services sector was at 47.9, while the PMI for manufacturing was at 50.1, marginally above the no-change threshold. Nor does there seem to be much hope of a swift turnaround, since new orders received by private sector companies in India fell in July.
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