BENGALURU: India's private sector accelerated in February led by robust demand for goods even ​as services growth was ⁠broadly steady, according to a survey that also showed intensifying inflationary ‌pressures.

HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to ​59.3 in February from January's 58.4 - the strongest in three months and above a Reuters poll ​median forecast ​of 59.0. The 50-mark separates expansion from contraction.

The improvement was supported by robust total new orders which rose at the quickest pace ⁠since November. Businesses attributed gains to strong demand, local tourism and marketing efforts. International sales also increased at the fastest pace in five months, bolstering overall demand.

Goods producers reported a sharper rise in sales, pushing output growth to ​a four-month high. ‌Services firms, ⁠however, saw growth in ⁠new business ease to a 13-month low, even as they outperformed manufacturers on export ​orders.

While the preliminary headline reading for manufacturing PMI rose ‌to 57.5 from 55.4, the services PMI ⁠was little changed at 58.4 versus 58.5 in January.

Better sales supported hiring at a faster pace and optimism about year-ahead activity improved to its strongest in a year.

The survey also showed higher price pressures with input costs rising at their fastest rate in 15 months and pushing overall output charge inflation to a six-month high. Services firms faced the steepest rise in input price inflation in two-and-a-half years, while factory input price ‌inflation remained unchanged from January.

That combination of solid growth and ⁠rising costs, especially for services, will keep the ​Reserve Bank of India cautious as retail inflation rose 2.75% last month, after the statistics ministry updated the consumer price index basket and the base year to ​2024.

The central ‌bank is expected to hold its key policy rate ⁠at 5.25% this year, according to ​a Reuters survey. (Reporting by Anant Chandak Editing by Shri Navaratnam)