New Delhi, Aug. 22 -- India's private sector economy expanded at its fastest pace on record in August, buoyed by a surge in new orders, according to HSBC's flash Purchasing Managers' Index survey released Thursday. The HSBC flash India Composite Output Index, which tracks month-on-month changes in combined output across manufacturing and services, jumped to 65.2 in August from 61.1 in July. "India's private sector economy posted its sharpest expansion since survey data were first collected in December 2005 during August," it said. The final PMI data for August will be released early next month. The four-point increase marked the sharpest expansion since the survey began in December 2005, said the latest flash survey. The acceleration was underpinned by one of the strongest rises in sales volumes on record, with businesses reporting robust demand that lifted activity across sectors, it added. The flash PMI data, compiled by S&P Global, is based on responses from around 400 manufacturers and 400 service providers. Meanwhile, the HSBC Flash India Manufacturing PMI, a composite gauge based on new orders, output, employment, suppliers' delivery times, and inventories, rose to 59.8 in August from 59.1 in July, signalling a quicker improvement in factory conditions. The reading was the highest since January 2008. "There was considerable strength in demand for Indian goods and services in August," the survey said. "Both manufacturers and service providers saw new order intakes rise at sharp and accelerated rates on the month, underpinning a near survey-record overall expansion," it added. In August, surveyed firms reported heavier workloads driven by stronger demand from customers across Asia, the Middle East, Europe, and the United States. The HSBC Flash India Services PMI Business Activity Index also rose to 65.6 in August, up from 60.5 in July, according to the survey, pointing to a sharp acceleration in service sector growth. "The Services flash PMI touched an all-time high of 65.6, led by a sharp pick up in new business orders, both export and domestic. The Manufacturing flash PMI rose further, inching closer to the 60-mark, led by a smart rise in new domestic orders," said Pranjul Bhandari, Chief India Economist at HSBC. "Growth of new export orders, however, remained unchanged at July's levels. Margins improved as the rise in output prices was much faster than that for input costs," she added. To be sure, India's drive to reach a $10 trillion economy within the next couple of decades is increasingly anchored in manufacturing, with semiconductors, electronics, electric vehicles, renewables, and defence emerging as key growth engines. To underpin this ambition, the government has stepped up capital investment in infrastructure, industrial capacity, and job creation....