BUOYANT DEMAND, BRISK ORDERS FUEL INDIA'S PVT SECTOR ACTIVITY IN APRIL

In both cases, rates of expansion driven by increase in aggregate business activity resulted in the highest composite output index since June 2010 and the fastest in close to 14 years

Indian private sector output expanded at a faster -pace in April as economic growth across the sector continued to strengthen in April buoyed by expansion to buoyant demand from domestic and external clients and pick-up in sales growth.

According to the HSBC Flash India PMI® data on Tuesday, positive demand trends fuelled new business intakes and output, taking the headline HSBC Flash India Composite PMI Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - from 61.8 in March to 62.2 in April.

In both cases, rates of expansion driven by increase in aggregate business activity resulted in the highest composite output index since June 2010 and the fastest in close to 14 years. The manufacturing industry led the latest upturn, as was the case in March, although softening growth at goods producers compared with accelerations at service providers.

Sustained increases in new orders added pressure on the capacity of manufacturing firms and their services counterparts, which in turn underpinned recruitment.

Jobs growth was notably stronger among the former.

The Reserve Bank of India had noted strong prospects of the manufacturing and services sectors as among factors in pushing the Central Bank for a vote to keep the policy repo rate unchanged at 6.50 per cent.