Increase in new businesses accelerates services expansion: PMI

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Mumbai, Oct 5 (IANS) The Indian service sector’s output expanded in September, due to “renewed increases in new business”, a key macro-economic data showed on Thursday.

The seasonally adjusted Nikkei India Services Purchasing Managers Index (PMI) Business Activity Index rose from 47.5 in August to 50.7, “a reading that was indicative of a slight pace of expansion”.

The Nikkei India Manufacturing PMI released on Tuesday showed that the composite indicator of manufacturing performance, stood at 51.2 in September.

The manufacturing index remained unchanged from August. However, it indicated a modest improvement in manufacturing sector business conditions in September.

An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.

The expansion of both the services and manufacturing sectors pushed the Nikkei India Composite PMI Output Index to 51.1 in September from 49 in August.

“The Indian private sector regained some lost ground since the implementation of July’s GST as service providers followed the manufacturing industry back to growth. The service sector registered slight expansions in output and new orders,” Aashna Dodhia, Economist at IHS Markit, and the author of the report, said.

“The labour market was strengthened over the month as the pace of job creation quickened to the fastest since mid-2011, led by the transport and storage and consumer services sub-sectors.”

–IANS

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