Combination of marketing campaigns by companies and strengthening demand conditions led to new business growth in Sept, the survey found out.
Mumbai : Services sector activity in India expanded for the first time in three months in September as it rebounded from GST-related contractions, driven by a surge in new business orders that supported job creation, a monthly survey said Thursday. The Nikkei India Services PMI Business Activity Index rose to 50.7 in September — from 47.5 in August — a reading that pointed to a slight pace of expansion. In PMI parlance, a print above 50 means expansion while a score below that denotes contraction.
The combination of marketing campaigns by companies and strengthening demand conditions led to new business growth in September, the survey found out. The latest services PMI follows the manufacturing one announced on Tuesday which showed that industrial activity registered the second straight month of expansion in September.
Accordingly, the Nikkei India Composite PMI Output Index, which maps both manufacturing and services sectors, rose to 51.1 in September, from 49 in August. “The Indian private sector regained some lost ground since the implementation of July’s GST ,” said Aashna Dodhia, Economist at IHS Markit, and author of the report.On the inflation front, input cost accelerated in September while output charges rose at the weakest rate since June. The survey further noted that service providers remained optimistic towards growth prospects over the coming 12 months.
