Page 17 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Bihar witnessed the highest combined inflation among all Indian states in August 2024 at 6.62%,
followed by Odisha at 5.63% and Assam at 5.03%. On the other hand, Telangana had the lowest
combined inflation of 2.02% followed by Uttarakhand at 2.37% and Delhi at 2.52%.

• The RBI's inflation target is 4% with a tolerance band of +/- 2 percentage points, meaning that the
target is within the range of 2% to 6%.

Manufacturing PMI – India

• The headline HSBC Flash India Composite Output Index – a seasonally adjusted index that measures
the month on-month change in the combined output of India's manufacturing and service sectors –
dipped to 59.3 in September from 60.7 in August.

• Softer expansions were seen across both the manufacturing and services sectors. Growth in new
orders moderated by a touch in September, but hiring levels rose at a faster pace, supported by
improving business confidence. The rise in employment in the service sector was the steepest since
August 2022, as companies responded to robust growth in new orders.

• The HSBC Flash India Manufacturing PMI – a single-figure snapshot of factory business conditions
calculated from measures of new orders, output, employment, supplier delivery times and stocks of
purchases – posted 56.7 in September, down from 57.5 in August. The reading signaled a further
marked strengthening in business conditions for goods producers, but the rate of improvement was
the softest since January.

Figure 9: Inflation trend based on all India CPI

Source- S&P Global PMI, HSBC Page | 16

September 2024