Thursday, October 3, 2024

Ads by Google

Ads by Google

HomeNewsIndia's services sector growth accelerates to 5-month high in August, PMI shows

India’s services sector growth accelerates to 5-month high in August, PMI shows

Welcome To Latest IND >> Fastest World News

Sep 04, 2024 10:55 AM IST

India’s services sector activity surged to a five-month high in August, with the HSBC Services PMI rising to 60.9.

Activity in India’s dominant services sector rose at its fastest pace in five months in August as demand remained resilient amid easing inflationary pressures, a survey showed.

In August, India's services sector showed robust growth, with the PMI climbing to 60.9, the highest since March. Demand remained strong despite a decline in international orders. Hiring continued at a solid pace, and inflationary pressures eased, leading to lower output price inflation.
In August, India’s services sector showed robust growth, with the PMI climbing to 60.9, the highest since March. Demand remained strong despite a decline in international orders. Hiring continued at a solid pace, and inflationary pressures eased, leading to lower output price inflation.

The HSBC final India Services Purchasing Managers’ Index , compiled by S&P Global, rose to 60.9 in August, up from July’s 60.3 and exceeding a preliminary estimate of 60.4.

Read more: Sebi staff complains of toxic work culture to finance ministry in fresh headache for Madhabi Puri Buch

The reading, which has topped the 50-mark separating growth from contraction since August 2021, was above the long-run average and marked the highest level since March.

“This growth was largely fuelled by an increase in new orders, particularly domestic orders,” said Pranjul Bhandari, chief India economist at HSBC.

The new business sub-index rose slightly from July to a four-month high and was above its historical average.

International demand was also solid but the pace of growth softened sharply from July to a six-month low.

Similarly, while business confidence remained positive in August it slid to its lowest in more than a year. Firms were optimistic about resilience in demand and hoped to see better growth in the year ahead.

Read more: Can mobile phone use cause brain cancer? What WHO-backed study says

Hiring in the services sector continued at a solid pace, despite easing to its weakest since April.

Cost pressures rose moderately last month on elevated food, labour and transportation costs, though the increase faced by service providers slowed to a four-year low.

“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. Consequently, output price inflation receded in August,” added Bhandari.

With inflationary pressure easing firms passed on costs to clients at a much milder pace than in July.

Read more: Adani Enterprises kicks off first bond sale aimed at individuals

Data last month showed inflation in India eased to a near five-year low of 3.54% in July, largely reflecting a high-base effect that suggested the slowdown was temporary. Inflation will average 4.2% this quarter and 4.6% next, a Reuters poll predicted.

A manufacturing PMI released on Monday dipped to a three-month low of 57.5 in August but the improvement in services activity kept the overall Composite PMI unchanged from July’s 60.7.

Stay updated with the…

See more

Latest IND