Data Alert
India August services PMI rises to 60.9 from 60.3 in July
This story was originally published at 12:32 IST on 4 September 2024
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--India Aug services PMI 60.9 vs 60.3 in Jul
--India Aug composite PMI 60.7 vs 60.7 in Jul
NEW DELHI – India's services sector activity rose well above its long-run average in August on account of growth in new business and slowdown in output charge inflation, S&P Global said today. The HSBC India services Purchasing Managers' Index, compiled by S&P Global, rose to 60.9 in August from 60.3 in July.
The final reading of services PMI was higher than the flash services PMI print of 60.4 released on Aug 22. A reading above 50 denotes expansion in activity, while a print below 50 indicates contraction.
The services sector saw the fastest expansion in August in the last six months, S&P Global said in its release. "Moreover, payroll numbers rose solidly as companies remained upbeat regarding the economic outlook."
The composite Purchasing Managers' Index, which is the weighted average of the manufacturing and services indices, for August matched July's reading of 60.7. Data released on Monday showed India's manufacturing Purchasing Managers' Index eased to 57.5 in August from 58.1 a month ago.
The services sector growth in August was largely fuelled by an increase in new orders, particularly domestic orders, Pranjul Bhandari, chief India economist at HSBC, was quoted as saying in the release. "Employment levels remained robust, though there was a slight decrease in the pace of hiring compared to July."
The finance & insurance business was the best-performing, with respect to output as well as new business, in the services sector in August. On the other hand, new export business increased at a slower rate. "Companies that reported an improvement commented on better demand from Asia, Australia, Europe, Latin America, the Middle East and the US," S&P Global said.
On a positive note, input costs rose at their slowest pace in six months, with both the manufacturing and service sectors exhibiting the same pattern, Bhandari said. "However, the outlook for the Indian private sector over the next year has moderated, reaching its lowest level in 15 months due to competitive pressure." End
Reported by Krity Ambey
Edited by Ashish Shirke
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