Nikkei India Services PMI at 50.7 in September

India Infoline News Service | Mumbai | October 05, 2017 10:41 IST

The Indian service sector recovered from the GST related contractions registered in the previous two months, as signalled by renewed increases in new business and output.

People in a business meeting checking the market behaviour
The Indian service sector recovered from the GST related contractions registered in the previous two months, as signalled by renewed increases in new business and output. Greater workloads supported job creation in September, with the rate of employment growth the strongest since June 2011. Input cost inflation accelerated in the latest month, while output charges rose at the weakest rate in since June.

Edging above the no-change mark of 50.0 in September, the seasonally adjusted Nikkei India Services PMI Business Activity Index pointed to a return to growth of output. The headline figure rose from 47.5 in August to 50.7, a reading that was indicative of a slight pace of expansion.

There was an expansion in manufacturing output for the second consecutive month. Improvements in both sectors meant that the Nikkei India Composite PMI Output Index rose from 49.0 in August to 51.1 in September.

Reflecting improvements in new orders, manufacturers continued to add to their payroll numbers in September. Although modest, the rate of employment growth quickened to the fastest since October 2012.

In the manufacturing sector, the rate of input price inflation intensified in September but was modest. Firms were only able to increase output charges at a marginal pace as they reportedly faced competitive conditions.

Business confidence dipped to a three-month low at the end of the third quarter, mirroring the trend observed for the private sector.

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