The expansion of the country’s services sector business activity was softer in September vis-à-vis August as the level of new business placed with Indian services firms increased moderately while prices charged were raised in line with a higher cost burden.
The headline seasonally adjusted Nikkei India Services Business Activity Index registered 52.0 in September, down from August’s 43-month high of 54.7. An index reading above 50 indicates an expansion, while below 50 a contraction.
‘Modest improvement’Pollyanna De Lima, economist at IHS Markit, and author of the report, said: “Service sector performance in India continued to improve relatively modestly in September, a trend that has been evident through the year-to-date. With manufacturing also on a softer footing, growth of private sector output and new orders eased in the latest month.”
Ms. De Lima said the ongoing upturn in new work combined with muted employment growth led a backlog of work to increase at the quickest pace in nearly two-and-a-half years. “As a result, businesses may be more willing to take on additional workers as one heads to the year-end.”
Reflecting softer expansions in activity at both service providers and manufacturers, the seasonally adjusted Nikkei India Composite PMI Output Index fell from August’s 42-month high of 54.6 to 52.4 in September.
