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Informist, Monday, Aug 5, 2024

 

--India Jul services PMI 60.3 vs 60.5 in Jun 

--India Jul composite PMI 60.7 vs 60.9 in Jun 

 

MUMBAI – India's services sector activity continued to expand at a robust pace in July, even as it slowed slightly from the previous month, thanks to "rosy demand", S&P Global said. The HSBC India services Purchasing Managers' Index, compiled by S&P Global, eased to 60.3 in July from 60.5 in June.

 

The final reading of services PMI was higher than the flash services PMI print of 61.1 released on Jul 24. A reading above 50 denotes expansion in activity, while a print below 50 indicates contraction. 

 

"Survey respondents mostly cited investment in technology, online offerings, new business gains and rosy demand as the main drivers of growth," S&P Global said. "The third-fastest expansion in international sales for nearly ten years supported another robust increase in overall new order intakes, which in turn underpinned the hiring of full- and part-time workers."

 

The composite Purchasing Managers' Index, which is the weighted average of the manufacturing and services indices, also moderated slightly in July to 60.7 from 60.9 in June. Data released on Thursday showed India's manufacturing Purchasing Managers' Index eased to 58.1 in July from 58.3 in the previous month.

 

New export orders increased amid strengthening demand for Indian services from across the world, with demand mainly rising in Austria, Brazil, China, Japan, Singapore, the Netherlands, and the US, S&P Global said. 

 

Strong demand, along with a pick-up in input costs, pushed firms to increase the selling prices in July, S&P Global said. The rate of charge inflation rose to a seven-year high last month. 

 

"When explaining cost increases, firms particularly mentioned labour and materials," S&P Global said. "The latter was in turn attributed to greater outlays on eggs, meat and vegetables." The overall rate of cost inflation in July was faster than June, but was below its long-run average.

 

With demand remaining strong last month, and with the year-ahead outlook seen optimistic, firms hired new employees at the steepest pace in close to two years, S&P Global said.

 

Around 30% of the surveyed firms forecast greater output volumes in the next 12 months, while only 2% expected a decline. "Anecdotal evidence suggested that confidence in the outlook for demand and sales, alongside improved customer engagement and new enquiries, boosted optimism," S&P Global said.  End

 

Reported by Shubham Rana

Edited by Manisha Baxla

 

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