Service sector growth slows down in August

Service sector growth, as measured by the Services Purchasing Managers Index, hits 60.1 points in August on increased export business activity, according to the data released by the S&P Global Market Intelligence on Thursday. The slightly lower reading was expected as the July services PMI of 62.3 was the highest since 2010.

- Ashokamithran T

The services PMI dipped 2.1 points in August from the 13-year high reading of 62.3 in July. The export order index grew 1 point to 55.5 in August, according to a research note from Barclays. This was the sharpest growth since September 2014, when the series started. Orders from Asia-Pacific, Europe, North America and Middle East supported the growth. A PMI reading above 50 indicates growth in the sector.

The growth in the export order index comes against the backdrop of a fall in exports in the first four months of the financial year, largely on account of tepid demand in main export markets such as the US and the EU.