The services sector expanded in September, recovering from two months of Goods and Services Tax-related contraction, according to a private sector survey.
The Nikkei India Services Purchasing Managers’ Index registered a reading of 50.7, indicating slight expansion. A reading above 50 denotes expansion while one below 50 indicates a contraction.
“The Indian service sector recovered from the GST-related contractions registered in the previous two months, as signalled by renewed increases in new business and output,” the report said. “Greater workloads supported job creation in September, with the rate of employment growth the strongest since June 2011.”
ADVERTISEMENT
“Edging above the no-change mark of 50.0 in September, the seasonally adjusted Nikkei India Services PMI Business Activity Index pointed to a return to growth of output,” the report added. “Companies indicated that the combination of marketing campaigns and strengthening demand conditions led to new business growth in September.”
The report said respondents remained optimistic about growth prospects over the coming 12 months. However, the report also noted that current business confidence fell to a three-month low at the end of the third quarter