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regular-article-logo Tuesday, 05 November 2024

India's services sector activity eased in August as export orders reported a jump

In Purchasing Managers' Index parlance, print above 50 means expansion while score below 50 denotes contraction

Our Special Correspondent New Delhi Published 06.09.23, 05:59 AM
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India's services sector activity eased in August even as export orders reported a jump, a monthly survey said on Tuesday.

Despite falling from 62.3 in July to 60.1 in August, the seasonally adjusted S&P Global India Services PMI Business Activity Index remained above the neutral 50 threshold for the 25th straight month.

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In Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

"Indian services companies achieved a remarkable milestone in August, as they welcomed a series record surge in new export business. Several regions contributed to the upturn, including Asia Pacific, Europe, North America and West Asia," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said.

Lima further noted that this spike in international demand supported one of the best sales performances recorded over the past 13 years, and acted as a catalyst for firms to expand their workforces as well as output.

"Demand strength also fostered a heightened sense of optimism regarding the outlook, boding well for economic growth prospects," Lima said.

On the prices front, buoyant demand for services meanwhile aided a further upward revision to selling prices.

On the jobs front, hiring activity across India's service economy continued to expand. The rate of job creation was moderate, but the strongest seen since last November.

Meanwhile, there was a mild slowdown in the growth of private sector activity across India during August.

The S&P Global India Composite PMI Output Index — which measures combined services and manufacturing output — fell from 61.9 in July to 60.9 in August.

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