Services activity expanded for the third month in a row in July , easing from a 17-month high in June, as a recovery continued in the sector that contributes 60% to the Indian economy. The economy seems to be on a revival path since the Narendra Modi-led government took over in the last week of May, with key indicators such as car sales, industrial production and exports looking up.
The HSBC Purchasing Managers' Index (PMI) for services stood at 52.2 points in July , down from 54.4 in June, but above the 50-point mark that separates expansion from contraction. It was the third successive month of expansion after a 10 consecutive months of decline. Of the six monitored sub-sectors, only hotels and restaurants and transport and storage companies registered reductions in activity. The Indian economy expanded 4.7% in 2013-14, marginally up from the decade-low 4.5% recorded in 2012-13, as manufacturing contracted 0.7%. Services expanded 6.7% in 2013-14 compared with 7% in the previous financial year, according to data from the Central Statistical Office.
While new business in the service sector rose for the third month in a row in July , it slowed to 52.6 last month from 54.3 in June, according to the report, based on a survey of 350 private sector firms. New orders across the private sector as a whole continued to rise at a robust pace as manufacturers reported the sharpest increase in new work intakes since February 2013.
The report was cautious about rising inflation in the economy . The RBI maintained a status quo on rates in its monetary policy on Tuesday .
The HSBC Purchasing Managers' Index (PMI) for services stood at 52.2 points in July , down from 54.4 in June, but above the 50-point mark that separates expansion from contraction. It was the third successive month of expansion after a 10 consecutive months of decline. Of the six monitored sub-sectors, only hotels and restaurants and transport and storage companies registered reductions in activity. The Indian economy expanded 4.7% in 2013-14, marginally up from the decade-low 4.5% recorded in 2012-13, as manufacturing contracted 0.7%. Services expanded 6.7% in 2013-14 compared with 7% in the previous financial year, according to data from the Central Statistical Office.
While new business in the service sector rose for the third month in a row in July , it slowed to 52.6 last month from 54.3 in June, according to the report, based on a survey of 350 private sector firms. New orders across the private sector as a whole continued to rise at a robust pace as manufacturers reported the sharpest increase in new work intakes since February 2013.
The report was cautious about rising inflation in the economy . The RBI maintained a status quo on rates in its monetary policy on Tuesday .
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