The overall PMI for India showed a strong increase in August.
The country’s service sector grew at the fastest pace in August since March. It also grew in August compared to July. This information has been given in a monthly survey on India’s service sector. The HSBC India India Services PMI business activity index related to this increased from 60.3 in July to 60.9 in August. According to PTI news, this increase was largely supported by productivity gains and positive demand trends.
What a PMI score above 50 means
According to the news, in the language of Purchasing Managers Index (PMI), a score above 50 means expansion in activities and a score below 50 means contraction. HSBC Chief Economist (India) Pranjul Bhandari said that the overall PMI for India saw a strong increase in August, driven by accelerated business activity in the service sector. It expanded at the fastest pace since March. This growth was mainly driven by an increase in new contracts, especially domestic contracts.
Employment levels remain strong
Talking about prices, the cost of raw materials increased the least in six months, a similar trend was seen in both manufacturing and service sectors. This led to a decline in output price inflation in August. The survey said that the overall rate of tariff inflation in India’s service economy remained moderate. This increase was also slower than the increase seen in July. At the same time, employment levels remained strong, although the pace of hiring was marginally slower than in July.
Prices for Indian goods and services rose less
The HSBC India Composite PMI Output Index stood at 60.7 in August, same as in July. The August survey data also showed that prices for Indian goods and services rose less than in July. Both manufacturing companies and their service counterparts saw cost pressures ease in August. According to the survey, the overall rate of inflation has come down to a six-month low.
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