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India Private Sector Growth Strongest In Over 2 Years

India's private sector expanded at the fastest pace in over 2 years during November with both manufacturing and services growing at stronger rates amid an increase in demand, survey data from IHS Markit showed on Wednesday.

The Nikkei India Composite purchasing managers' index rose to 54.5 in November from 53 in October, marking the strongest print since October 2016. A reading above 50 suggests growth in the private sector. Growth was stronger in manufacturing than in services.

The Nikkei India Services PMI climbed to 53.7 from October's 52.2. The reading was the strongest since July.

"The welcoming news complement similar upbeat results in the manufacturing industry, released earlier in the week, and so far suggest that the private sector economy will provide impetus to Q3 FY18 GDP results," IHS Markit Principal Economist Pollyanna De Lima said.

Services activity was boosted by greater client numbers, favorable market conditions, and sales growth. Employment increased for a 15th month in a row.

Information & communication led the increases in both business activity and new work, while Real Estate & Business Services was the only category to not see expansion, the survey report said.

Cost inflation for the services sector slowed to a 7-month low, while the rate of increase in selling prices accelerated from October.

Private sector business improved from October's 20-month low, largely led by manufacturers.

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