BENGALURU, July 24 Reuters India39;s business activity accelerated at its fastest pace in three months in July thanks to strong demand, especially in the services sector, according to a survey that also showed companies hired at the fastest pace in over 18 years.

The data reflected sustained growth in the private sector, which according to the government39;s first budget since the national election will get incentives to improve skills and spur employment.

HSBC39;s flash India composite purchasing managers39; index, compiled by SP Global, rose to 61.4 this month from June39;s final reading of 60.9, marking three years of expansion. The 50level separates growth from contraction.

The Flash Composite Output Index signalled continued robust growth in India39;s private sector, noted Pranjul Bhandari, chief India economist at HSBC.

The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its longrun average.

Overall expansion was led by the dominant services industry, whose PMI rose to a fourmonth high of 61.1 this month from 60.5 in June. Growth in manufacturing was also robust, and the factory PMI increased to 58.5 from 58.3 its highest since April.

The report said favourable market conditions, buoyant client appetite and enhanced technology helped the improvement in private sector activity. Both new business in the services…