Services Activity Hits Highest Level Since March: Nikkei India Services

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, November 4, 2015, 11:36 [IST]

The Nikkei India Services PMI, released by Markit rose to to 52.6 in October from 51.5 in Sept. This was the fastest rise seen since March, 2015

"PMI Output Index pointed to a stronger expansion in private sector activity across the country that was the joint-fastest since March.

The latest improvement was driven by services, as goods producers saw growth of production wane," a release by Markit on behalf of Nikkei India PMI stated.

Underpinning growth of services activity was a quicker increase in new business inflows. Incoming new work expanded at a solid pace that was the most pronounced since February. According to panellists, demand conditions improved.

Order book volumes in the manufacturing economy also rose, albeit at the weakest pace in the current 24-month sequence of expansion.

Commenting on the Indian Services PMI survey data, Pollyanna De Lima, economist at Markit, which compiles the survey, said: "India's economic growth shifted into a higher gear in October, driven by the service sector. Although
manufacturing production continued to expand, growth eased and was sluggish by historical standards.

"The upwards trend in private sector output reflected stronger inflows of incoming new work, one that was the most marked since March.

Services companies saw a faster rise in new business than their manufacturing counterparts, with data implying that price discounts supported growth of new projects.

"Private sector firms remained wary of costs and left payroll numbers, once again, unchanged. Average input prices rose in both the service and manufacturing sectors, although at rates that were relatively weak."

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