India Services Growth Eases In September

(RTTNews) - India's service sector activity showed a loss in growth momentum but remained strong overall amid healthy demand trends, final data compiled by S&P Global showed on Monday.

The seasonally adjusted HSBC India Services PMI dropped to 60.9 in September from 62.9 in August. The flash score was 61.6. However, a score above 50.0 indicates expansion.

The latest rise in output was driven by demand buoyancy and new business gains, alongside tech investment and favorable public policies, the survey said.

New orders grew at a slower pace in September, reflecting softer improvements in international demand for Indian services as export orders rose at the weakest pace in six months.

The survey respondents revealed that there was a general lack of pressure on the capacity of service firms, and the employment increased at a modest pace.

On the price front, input price inflation eased, and the charge inflation was the slowest in six months.

Looking ahead, companies remained confident about growth prospects, with the overall level of positive sentiment reaching a six-month high.

The composite output index dropped to 61.0 in September from 63.2 in August, indicating the slowest rate of expansion in the Indian private sector in three months.