INVC NEWS
Mumbai : The India’s service sector growth has increased in August compared to July. It has seen the fastest growth since March. This information has been given in a monthly survey. The seasonally adjusted HSBC India Services PMI Business Activity Index increased from 60.3 in July to 60.9 in August. This is the fastest expansion since March. It was largely supported by productivity gains and positive demand trends.
In the language of Purchasing Managers Index (PMI), a score above 50 means expansion in activities and a score below 50 means contraction. A chief economist of HSBC said that the overall PMI for India saw strong growth in August, driven by accelerated business activity in the service sector. It expanded the fastest since March. This growth was mainly driven by an increase in new contracts, especially domestic contracts.
The cost of raw materials increased the least in six months, a trend seen in both manufacturing and services sectors. This led to a decline in output price inflation in August. The survey said that the overall rate of tariff inflation in India’s services economy remained moderate. This increase was also slower than the increase seen in July. At the same time, employment levels remained strong, although the pace of hiring was marginally slower than in July.
