Services PMI Hits 3-month High

Services activity firmed up in India in July after slowing in June. The Nikkei India Services Business Activity Index edged up to a three-month high of 51.9 in July after a reading of 50.3 in the previous month, marking the thirteenth month of continuous upward trend that highlights ongoing output growth in the sector.
A reading above 50 on the index indicates economic expansion while a figure below that indicates contraction. The growth is attributed to faster increase in new business, underpinning stronger growth of output and boosting confidence. Part of the upswing in incoming new work was supported by price discounts.
The robust service sector data was complemented by a healthy growth shown by the factory sector. Data released by the same agency on Monday showed that India's manufacturing activity was at a four month high in July, with manufacturing PMI edging up to 51.8 from 51.7 in the previous month. The two data sets put together made the composite PMI Output Index climb to a three-month high of 52.4 in July from 51.1 in June. This reading was consistent with a moderate increase in overall private sector activity. Business sentiment among Indian service providers improved during July.

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