Services sector slumps to 7-mth low
S&P Global India Services PMI Index falls to 58.4 in Oct from a 13-yr high of 61 in Sept
New Delhi: The services sector growth in India fell to a seven-month low in October on softer increase in output and new business, 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.
The survey is compiled from responses to questionnaires sent to a panel of around 400 service sector companies. “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 over its nine-year history,” Lima added.
