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regular-article-logo Tuesday, 16 April 2024

Services activity falls to 7-month low due to competitive conditions, price pressures

The seasonally adjusted S&P Global India Services PMI Business Activity Index fell to 58.4 in October, from a 13-year high of 61 in September, signalling the slowest rate of expansion since March

Our Special Correspondent New Delhi Published 04.11.23, 11:11 AM
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Activity in the services sector fell to a seven-month low in October on a softer increase in output and new business orders, amid competitive conditions and price pressures, a monthly survey said on Friday.

The seasonally adjusted S&P Global India Services PMI Business Activity Index fell to 58.4 in October, from a 13-year high of 61 in September, signalling the slowest rate of expansion since March. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

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“Several companies managed to secure new contracts, but some mentioned subdued demand for their services and competitive conditions,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

The October data highlighted the second-fastest upturn in international orders placed with Indian services companies since the series started in September 2014. Survey members noted gains from clients in Asia, Europe and the US.

“Export was an area of particular strength in October, with new business gains from Asia, Europe and the US boosting growth to its second-highest in the series,” Lima added.

On the price front, services companies saw an increase in their expenses, which they attributed to higher food, fuel and staff costs.

Meanwhile, the S&P Global India Composite PMI Output Index fell to 58.4 in October from 61 in September.

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