Services return to growth in September

Services sector activity in India expanded for the first time in three months in September as it rebounded from GST-related contractions, driven by a surge in new business orders that supported job creation.

The Nikkei India Services PMI Business Activity Index rose to 50.7 in September from 47.5 in August -a reading that pointed to a slight pace of expansion. In PMI parlance, a print above 50 means expansion while a score below that denotes contraction.

The combination of marketing campaigns by companies and strengthening demand conditions led to new business growth in September. The latest services PMI follows the manufacturing one announced on Tuesday which showed that industrial activity registered the second straight month of expansion in September. Accordingly , the Nikkei India Composite PMI Output Index, which maps both manufacturing and services sectors, rose to 51.1 in September, from 49 in August.

No comments: