New Delhi, Sept. 3 -- India's services activity expanded in August, supported by stronger output and new business, even as the overall pace of growth was the second-slowest recorded since March 2022, a monthly survey said on Thursday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 53.3 in July to 54.1 in August, as demand conditions remained supportive and new business inflows continued to rise.
The rate of expansion recorded in August was the second-weakest since March 2022, amid subdued bookings, strong competition and reduced transport operations.
The HSBC India Services PMI Business Activity Index is based on a single question asking how the level of business activity compares with the situation the month before.
"India's services activity expanded faster in August. Growth was supported by stronger output and new business, although the overall pace was still among the weakest seen in over four years, with some firms citing subdued bookings, competition and reduced transport operations," said Pranjul Bhandari, Chief India Economist at HSBC.
Firms nevertheless continued to hire, with job creation reaching a 15-month high, while price pressures picked up only modestly.
"Employment increased at a marked rate, with job creation reaching a 15-month high. Price pressures picked up only modestly: input cost inflation edged up slightly, while prices charged rose at the fastest rate since March as firms passed on higher operating costs," Bhandari said.
Companies reported higher spending on digital platforms, electricity, inputs, labour, marketing and regulatory requirements. Meanwhile, international demand continued to support growth.
Published by HT Digital Content Services with permission from Millennium Post.