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Services sector activity softens in August : Nikkei
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- As per a monthy survey, 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.
Details
- The seasonally adjusted Nikkei India Services Business Activity Index, PMI fell from July's peak of 54.2 to 51.5 in August owing to weakest growth in new work in three months.
- PMI or a Purchasing Managers' Index (PMI) is an indicator of business activity -- both in the manufacturing and services sectors.
- It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before.
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction. Higher the difference from this mid-point greater the expansion or 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.
- 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.
- Meanwhile, business confidence remained positive in August and was driven by upbeat forecasts of sales, an expected improvement in demand and promotional activities
Source
The Hindu.