India’s private sector activity contracted at a fastest rate in four and a half years in September amid tighter financial conditions and heightened macroeconomic uncertainty, an HSBC survey said on Friday
The HSBC India Composite Output Index, which maps both services and manufacturing activity fell to 46.1 in September from from 47.6 in August, signalling a sharp deterioration in business activity across the country’s private sector.
The index has posted below the 50 mark, which marks contraction, for the third consecutive month.
Meanwhile, the services sector, which accounts for around 60 per cent of India’s GDP, fell sharply from 47.6 in August to 44.6 in September.
According to HSBC, private sector output witnessed the third consecutive drop in new order levels amid weaker demand and a difficult economic climate.