Private sector activity in India reached record levels with the HSBC Flash India Composite PMI Output Index touching 65.2, driven by increased order volumes.The services sector achieved its highest reading of 65.5 in August since measurements began in December 2005, surpassing manufacturing sector performance, as indicated in Thursday’s private survey, cited by Economic Times.The Composite PMI, which combines manufacturing and services indices proportionally, registered 61.1 in July and 60.7 in August 2024.“The services Flash PMI touched an all-time high, led by a sharp pick up in new business orders, both export and domestic,” said Pranjul Bhandari, India chief economist at HSBC.The manufacturing sector showed improvement with PMI reaching 59.8 in August, up from July’s 59.1, recording its strongest performance since January 2008. “The manufacturing Flash PMI rose further, inching closer to the 60-mark, led by a smart rise in new domestic orders,” Bhandari said. However, growth of new export orders remained unchanged at July’s levels, she added.International orders increased at their fastest rate since 2014, with participants reporting enhanced demand from clients across Asia, West Asia, Europe and the US.Employment growth exceeded historical averages, with robust recruitment in services compensating for reduced hiring in manufacturing.The private sector experienced increased inflation pressures. Higher wages, particularly in services, and increased raw material costs contributed to rising input expenses.Businesses implemented the steepest price increases since February 2013. “Margins improved as the rise in output prices was much faster than that for input costs,” Bhandari noted.Businesses maintain positive expectations for activity over the coming 12 months, with both manufacturing and service sectors displaying enhanced confidence.This confidence stems from anticipated favourable market conditions, according to survey feedback.