India’s services sector activity fell in August from July’s 21-month peak as new business orders declined, following which firms raised their staffing levels at a modest pace amid rising input cost inflation, a monthly survey said on Wednesday.
21-month peak in July
The seasonally adjusted Nikkei India Services Business Activity Index, fell from July’s peak of 54.2 to 51.5 in August owing to weakest growth in new work in three months.
In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
“August data signalled that the pace of growth in India’s service economy cooled from July’s recent peak. This was matched by the slowest expansions in new business and employment since May and November 2017, respectively,” said Aashna Dodhia, economist at IHS Markit, the author of the report.
The headline seasonally adjusted Nikkei India Composite PMI Output Index fell to 51.9 in August from July’s 21-month high of 54.1, owing to weaker growth in both the manufacturing and service sectors.
On the price front, input cost inflation was the strongest in nine months.
On a positive note, business confidence rose to the highest level since May.
