Services PMI accelerates in August; job creation strongest in 14 years
After reaching a four-month low in July, India's services activity picked up speed in August thanks to a significant increase in new orders and a pickup in business activity. The industry experienced the largest uptick in employment creation in more than 14 years.
August saw a rise in the Services Purchasing Managers' Index (PMI), which went from 55.5 in July to 57.2 in August. A value above 50 indicates growth in the services sector, while one below it indicates a decline.
According to the S&P Global survey, the recovery in growth was brought on by better gains in new business, ongoing gains in demand, job creation, and overtime labour. Favourable market conditions and effective advertising contributed to a further rise in new business orders placed with services firms in August.
In spite of the transfer of cost increases to customers, resilient demand enabled service providers preserve some degree of pricing control and raise selling prices.
Data revealed that even as the overall rate of inflation slowed to an 11-month low, services companies' operational costs continued to rise, mostly as a result of increasing prices for food, fuel, and labour.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.