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regular-article-logo Tuesday, 16 April 2024

India’s services sector growth surges to 13-year high in September

The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 61 in September from 60.1 in August, signalling a sharp upturn

Our Special Correspondent New Delhi Published 06.10.23, 08:38 AM
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A monthly survey said the growth rate in India’s services sector rose to a 13-year high in September on a sharp increase in new business orders, creating more jobs amid improved business sentiment.

The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 61 in September from 60.1 in August, signalling a sharp upturn.

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In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

The latest data showed a substantial increase in new business orders placed with Indian service providers, which is the second-fastest since June 2010. Besides the rise in total sales, firms noted an upturn in demand coming from abroad, particularly from clients in Asia, Europe and North America.

“The latest PMI results brought more positive news for India’s service economy, with September seeing business activity and new work intakes rising to one of the greatest extent in over 13 years,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

The level of positive sentiment was at its highest for over nine years. An upturn in business optimism about the year ahead, fuelled by buoyant demand conditions, bodes well for further growth across the service sector. Job creation was sustained as the business mood improved.

“Services charges rose softer as cost pressures receded to one of the lowest in two-and-a-half years. Although the latter indicates that near-term output price inflation may cool, worries about potential fluctuations in food prices due to El Niño means the RBI is highly unlikely to cut rates until early next year,” Lima said.

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