BENGALURU, Sept 23 (Reuters) - India's business growth accelerated in September on stronger demand in both manufacturing and services, a preliminary survey showed, though weaker export momentum and more subdued hiring tempered the upbeat picture.
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HSBC's flash India Composite Purchasing Managers' Index (PMI) rose to 56.5 from August's 54.3, its highest since June and back above its long-run average. It exceeded the Reuters poll median forecast of 54.4. Readings above 50 indicate expansion.
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But the rebound did not reverse the quarter's broader slowdown. Based on September's preliminary reading, the composite index averaged 55.1 this quarter, down from 58.2 in April-June, suggesting softer growth in Asia's third-largest economy after a forecast-beating 7.8% expansion last quarter.
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The manufacturing PMI climbed to 55.7 from 52.8, its highest in seven months, as output and new orders grew faster. Goods producers also resumed hiring after a marginal reduction in August.
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The services index rose to 55.8 from 54.1. However, new exports increased at the slowest pace in 33 months, offsetting a modest pickup in manufacturing exports and dragging overall export growth lower. Hiring in the services sector also lost momentum.
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Overall input-cost inflation eased to its lowest since January, driven by services, offering businesses some relief. Yet selling-price inflation was broadly unchanged, suggesting consumers saw scant relief from rising prices.
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Business confidence about the coming year rose to a four-month high.
Reporting by Anant Chandak Editing by Shri Navaratnam
Source: Reuters