September 2021: Services expand

Activity in the country’s crucial services sector continued to expand in September, helped by the lifting of restrictions across the country but the pace was slower than August, and employment rose for the first time in 10 months in the segment.

The India Services Business Activity Index posted a reading of 55.2 in September, highlighting a marked increase in output. Despite falling from August’s 18-month high of 56.7, the latest data remained well above its long-run average. The 50-point mark separates expansion from contraction. The survey is compiled by IHS Markit from responses to questionnaires sent to a panel of around 400 service sector companies.

Companies indicated that greater footfall boosted sales and output in the latest month, with some taking on additional staff to cope with rising workloads. Buoyed by signs of improvements in underlying demand, Indian service providers took on additional staff during September. The increase in employment ended a nine-month sequence of job shedding, but was marginal overall as some panellists indicated having sufficient workforces to deal with their workloads, the survey showed.

No comments: