 "August PMI services comes at 60.3 on strong order book; output elevated")
India's service sector continued to expand in August, albeit at a slower pace than in July, findings of a survey showed on Tuesday.
According to S&P Global, India's services purchasing managers' index (PMI) came out to be 60.1 in August, lower than the 62.3 recorded in July. However, in June it was 58.5. In August 2022, India's services PMI was 56.2.
A reading above 50 shows expansion in the sector.
Notably, services firms indicated the sharpest upturn in new export business since the series started in September 2014. Asia Pacific, Europe, North America and West Asia were among the top sources of sales gains.
Total new business increased for the twenty-fifth month in a row during August.
"Indian services companies achieved a remarkable milestone in August, as they welcomed a series-record surge in new export business. Several regions contributed to the upturn, including Asia Pacific, Europe, North America and West Asia," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said.
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"However, favourable demand trends also led to the joint-fastest increase in prices charged for Indian services in over six years, which may prompt attention from policymakers and potentially delay cuts to the benchmark repo rate," De Lima added.
Hiring activity across the service economy continued to expand halfway through the second quarter. The rate of job creation was moderate, but the strongest seen since last November.
"Survey participants reported a blend of permanent and temporary staff recruitment on both part- and full-time bases," the report said.
The overall level of positive sentiment climbed to its highest in the calendar year to date. Advertising, demand strength, plans to price competitively and a healthy number of client enquiries all boosted optimism in August, the report added.