The country's business activity is at a four-month high

Mumbai: In the first month of the new year, business activity in the country has increased to a four-month high. A private survey report said business activity increased as a result of strong demand. In the preliminary estimate of January, the cost of raw materials has also been the highest since August in the current month.

The Composite Purchasing Managers' Index (PMI) for services and manufacturing sectors for January by S&P Global is seen at 61.00. However, this is a preliminary estimate and the final figure will be seen after the end of January.

The PMI suggests that India will continue to be a fast growing economy for some time to come. India's economic growth rate for the current financial year has been estimated by various agencies to be around 6.90 percent.

January's composite PMI is at its highest level since September. In December, the figure was 58.50. An index above 50 is considered an extension of that sector. In January, the index is seen above 50 for the 30th consecutive month.

According to the survey report, the economic growth rate of the country has been fast in January. Not only new orders are at a one-month high, export orders are looking stronger than ever.

In the current month, the PMI of the manufacturing sector is 56.90 while the growth rate of the service sector is 61.20. This situation is being seen on the back of strong growth in demand. As a result of the increase in demand, companies' business optimism for the next 12 months has also increased. Especially the optimism of the company in the manufacturing sector has increased.

Companies continue to hire employees for the 20th month in a row. However, the report also noted that more jobs were created in the service sector than in manufacturing.

Raw material prices also rose at the fastest pace since August 2023 due to increased demand. India's retail inflation hit a four-month high in December.