India's service sector activity logged a further sharp expansion in August amid a series-record increase in new export business, the results of the purchasing managers' survey by S&P Global showed on Tuesday.
The services purchasing managers' index, or PMI, dropped to 60.1 in August from 62.3 in July. Nonetheless, a score above 50 indicates expansion in the sector.
Further, the business activity index indicated one of the strongest increases in output seen since mid-2010, linked to positive consumer appetite, favorable market conditions, and successful events.
India services firms reported the sharpest increase in new export business since the series began in September 2014, with major sources being Asia Pacific, Europe, North America, and the Middle East.
Total new business expanded at one of the strongest rates in thirteen years on the back of robust demand and fruitful advertising.
On the price front, the rate of charge inflation quickened to the joint-fastest in over six years. Despite easing in August, input price inflation was the second-fastest in over a year, driven by increased food, input, and labor costs.
In August, the rate of job creation across the Indian services economy was moderate, but the strongest seen since last November.
Capacity pressures at service providers ticked higher in August, evidenced by a stronger increase in work pending completion.
The composite output index came in at 60.9 in August versus 61.9 in May, indicating a mild slowdown in the growth of the private sector.
