While the latest figure indicated a slowdown in output growth across the private sector, it remained consistent with a moderate expansion in activity. Output growth weakened from July at both services and manufacturing companies, although manufacturing production increased at the second-quickest pace since February 2013.
Adjusted for seasonal influences, the headline HSBC India Services Business Activity Index posted 50.6 in August, down from 52.2 in July. The latest reading highlighted a fourth consecutive monthly expansion in service sector output, and was consistent with a modest rate of growth. Anecdotal evidence linked both upward and downward movements in activity to changes in orderbook volumes. Sector data indicated that growth of activity was broad-based, as only Hotels & Restaurants
companies reported a reduction. The fastest increase was at Post & Telecommunications firms.
Indian services firms registered a fourth successive monthly rise in new orders in August, although the pace of expansion slowed from July. Panel members attributed improvements in new business to stronger demand.
Incoming new work rose solidly across the private sector as a whole, with the sharper expansion recorded in the manufacturing industry.