India factory output hits 17-month peak: PMI

NEW DELHI, Aug 1:  Indian factory output surged to a 17-month peak in July, according to a key business survey 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.

"A flood of new orders from both domestic and external sources has led to a surge in activity," Frederic Neumann, HSBC Asian research co-head said.

"Finally, the manufacturing sector is starting to pick up steam," Neumann said.    — AFP