Services sector grew at a slower pace in September, after hitting a 43-month high level in the previous month, as flow of domestic and foreign orders turned weak amid competitive pressure, a monthly survey showed on Wednesday.
The Nikkei India Services Purchasing Managers’ Index (PMI), which tracks services sector companies on a monthly basis, stood at 52 in September, down from August’s 43-month high reading of 54.7, pointing to a slower rate of expansion. A reading above 50 means the sector is expanding while a reading below that points to contraction.
The index showed 15th straight month of expansion in September, while inflationary pressure remained subdued as reflected in the RBI’s rate cut decision on Tuesday. “Service sector performance in India continued to improve relatively modestly in September, a trend that has been evident throughout the year-to-date,” said Pollyanna De lima, Economist at IHS Markit that compiles the data and author of the report. As per the survey, new business orders placed with Indian services firms rose moderately in September, but competitive pressure and unfavourable weather conditions as factors weighed on the incoming work flow.