Published on: October 6, 2021
PURCHASING MANAGERS’ INDEX
By : IHS Markit’s survey
- The India Services Business Activity Index, which had hit an 18-month high of 56.7 in August, eased to 55.2 in September but was well above its long-run average. A reading above 50 indicates an expansion in activity.
- While the loosening of COVID-19 curbs amid a receding second wave saw stronger demand including increased footfalls at services businesses, business confidence weakened in September on concerns about inflationary pressures.
- Higher fuel, material, retail and transportation prices pushed up the average cost burdens faced by Indian service providers further last month.
- Forecasts of better demand in the year ahead supported business confidence regarding output, but growth looks set to be constrained by rising inflation expectations
- Travel restrictions continued to weigh on international demand for Indian services as new export business contracted for the nineteenth month in a row, and at the quickest rate since May, IHS Markit said.
- September’s composite PMI, which includes both manufacturing and services, was little changed at 55.3. Employment at the composite level stabilised after contracting in each of the prior 18 months as a marginal reduction in jobs at goods producers broadly offset the growth at service providers.