Indian factory output surged to a 17-month peak in July, according to a key business survey on Friday, fuelling recovery hopes in Asia’s third-largest economy.
But the HSBC Purchasing Managers’ Index (PMI) keenly watched as a harbinger of industrial expansion and overall economic health, also flagged inflation worries ahead of a key monetary policy meeting next week.
The PMI survey jumped a full 1.5 points to 53.0 last month — its best performance since February 2013. A reading of over 50 points suggests expansion while under 50 indicates contraction.
