Pvt sector gains momentum in Apr

India's private sector activity accelerated in April after the sector saw its slowest pace of expansion in 14 months in March. The accelerated growth was supported by capacity expansion, better demand conditions, a rise in new orders, and investment in technology development, S&P Global said in a release on Thursday.

The HSBC Flash Composite Purchasing Managers' Index (PMI) rose to 58.3 in April from 57.0 in March. April's print also indicated a sharp rate of growth that was substantial relative to its long-run average, the report said.

India's private sector activity expanded in April on the back of aggregated activity and new orders received during the month. The HSBC Flash Services PMI rose to 57.9 in April from 57.5 in March. "New orders likewise rose at a quicker pace than in March and one that was historically strong," S&P Global said. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

Even as inflation rates remained historically elevated, they retreated from those registered in March due to a cool down in the service sector, S&P Global said. Price pressures, however, intensified for the manufacturing sector. The Flash Manufacturing PMI rose to 55.9 in April from 53.9 in March, led by notable rebounds in rates of increase for output and sales.

At the sector level, service providers recorded the weakest growth in just over a year owing to the war in West Asia. However, the manufacturing sector witnessed the fastest expansion in nine months. At the composite level, new export business rose at a softer rate than in March, the report said.