New Delhi: After a dip in the manufacturing growth, the services sector a major driver of the Indian economy slowed down in September.
The Nikkei/Markit Services Purchasing Managers’ Index fell to 52 in September from 54.7 in August. However on a positive note this is 15th month that services sector has seen a positive growth, highlighting the ongoing growth in the country. In August, the services PMI was at 43-month high.
“The service sector performance in India continued to improve relatively modestly in September, a trend that has been evident throughout the year-to-date. With manufacturing also on a softer footing, the growth of private sector output and new orders eased in the latest month,” said Pollyanna De Lima, economist at IHS Markit, and author of the report.
She said that food and petrol prices continued to climb in September, which placed pressure on operating costs. “In response, private sector companies raised their own prices for the second straight month, although inflation remained relatively soft,” said Ms Lima.
The survey said that level of new orders placed with Indian services firms increased moderately in September, following a solid rise in August.
“Panellists commented on sustained demand growth, but mentioned competitive pressures and unfavourable weather conditions as factors weighing on new work inflows. The upturn in order books at manufacturers also lost some momentum,” said survey. It said that outstanding orders at Indian service providers rose for the fourth month running in September and at the quickest rate since July 2014.
