India’s services sector activity expanded in the month of August to the greatest extent since March as growth of incoming new business ticked higher. Moreover, payroll numbers rose solidly as companies remained upbeat regarding the economic outlook. Another positive development included a slowdown in output charge inflation, which was helped by cost pressures retreating to their lowest in four years.
According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 60.9 in August from 60.3 in July, aided by productivity gains and positive demand trends. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- remained steady at 60.7 in August as against same figure of 60.7 in July.
The report further noted that the pick-up in total sales growth was centred on the domestic market, as new export business increased at a slower pace in August. The rise was still marked, despite easing to a six-month low. Beside, service providers signaled a further increase in their operating expenses, amid greater food, labour and transportation costs. The overall rate of inflation was, however, modest and the weakest since August 2020.
