4.8.18

July Services PMI records strong growth

India’s services sector activity remained in the growth territory for the second consecutive month in July, as business activity witnessed the strongest growth since October 2016 amid improved demand conditions. The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.6 in June to 54.2 in July, as new businesses rose at the fastest rise since June 2017.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Amid reports of improved demand conditions, business confidence towards the 12-month outlook picked up from June’s recent low. Subsequently, firms raised their staffing levels at the strongest pace since April. Meanwhile, the headline seasonally adjusted Nikkei India Composite PMI Output Index, that maps both the manufacturing and services sector, rose from 53.3 in June to 54.1 in July.

On the prices front, inflationary pressures remained marked during July.

The six-member Monetary Policy Committee headed by RBI Governor Urjit Patel for the second time in two-month raised interest rate by 0.25 per cent on inflationary concerns.

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