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India’s August services PMI rises, but weak demand persists
India’s services businesses grew a little faster in August.
Their PMI score rose from 53.3 to 54.1, and a score above 50 means growth.
However, fewer new customers were signing up, so demand remained weak.
Overseas orders did not improve much either.
Companies hired workers at their fastest rate in 15 months, which was a positive sign.
Businesses also raised their prices because operating costs increased.
Manufacturing slowed sharply, offsetting the improvement in services.
Overall, India’s economy was still growing, but more slowly and cautiously.
India’s services PMI rose to 54.1 in August from 53.3 in July, signaling continued expansion.
The final reading was below the preliminary estimate of 54.5.
New business grew at its second-slowest pace in more than four years, while export orders remained broadly unchanged.
Services companies increased hiring at the fastest rate in 15 months despite cautious business confidence.
Manufacturing growth fell to a five-year low, leaving the composite PMI unchanged at 54.3.
- Who
- India’s services companies, manufacturers, businesses and policymakers.
- What
- India’s services sector expanded modestly in August, while manufacturing growth slowed and overall private-sector growth remained unchanged.
- Where
- India.
- When
- August; the survey results were reported on Thursday.
- Why
- Services growth was restrained by weak new business and subdued demand, while higher costs, energy prices, geopolitical uncertainty and a weaker rupee created additional pressure.
Key facts
- Services PMI
- 54.1 in August, up from 53.3 in July.
- Preliminary estimate
- The preliminary August services PMI was 54.5.
- Composite PMI
- The composite PMI remained at 54.3 in August.
- New business
- Growth reached its second-slowest pace in more than four years.
- Hiring
- Employment increased at the fastest rate in 15 months.
- Manufacturing
- Manufacturing growth fell to a five-year low.
- India GDP growth
- GDP grew 7.8% in the April-June quarter, according to the report.
Sources
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