PMI services remain strong during August

New Delhi: India’s services sector activity eased in August, but growth rates for new orders remain elevated, as services firms indicated the sharpest upturn in new export business, which acted as a catalyst for firms to expand their workforces as well as output, a monthly survey said on Tuesday.

Despite falling from 62.3 in July to 60.1 in August, the seasonally adjusted S&P Global India Services PMI Business Activity Index indicated one of the strongest increases in output seen since mid-2010. For the 25thstraight month, the headline figure was above the neutral 50 threshold. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“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 the Middle East,”said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.

Lima further noted that this spike in international demand supported one of the best sales performances recorded over the past 13 years, and acted as a catalyst for firms to expand their workforces as well as output. "Demand strength also fostered a heightened sense of optimism regarding the outlook, boding well for economic growth prospects,” Lima said.