India services sector growth eases in September
India services sector growth eased in the month of September but was well above the neutral mark of 50.0 to signal another substantial upturn in output. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 60.9 in September from 62.9 in August. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 61.0 in September as against 63.2 in August.
Operating conditions across India's service economy remained favourable in September, with healthy demand trends underpinning further growth of total new orders, exports, employment and business activity. New order intakes rose at a sharp pace that was nevertheless softer than that registered in August. The survey report noted that part of the slowdown reflected softer improvements in international demand for Indian services.
Besides, External sales still rose in September, but did so to the least extent since March. Companies identified the supply of services at lower prices elsewhere as the main factor behind the slowdown in growth of export orders. Indian services companies reported a further increase in their expenses at the end of the second fiscal quarter. Prices charged for the provision of Indian services likewise increased at a weaker rate in September. The pace of inflation was modest, the slowest since March and broadly in line with the long-run series average.
