Watch for cracks In services PMI

India’s services sector is on a strong footing even as the momentum cooled off last month, albeit slightly.

- Harsha Jethmalani

The seasonally adjusted S&P Global India Services PMI Business Activity Index eased to 60.1 in August from 62.3 in July. A reading above 50 indicates a month-on-month expansion. The moderation in the headline index is not surprising after the July reading had hit a multi-year high amid a challenging demand scenario globally.

Note that in August, services firms saw one of the strongest increases in output since mid-2010. The headline index got a boost from improved export demand as local demand softened.

The sub-index tracking new export orders rose to 55.5 in August from 54.5. With that, services companies saw the sharpest upturn in new export business since September 2014. Asia Pacific, Europe, North America, and the Middle East were among the sources of sales gains, said the PMI report. Counterparts in the Indian manufacturing sector also saw an increase in international sales in August. For goods producers, the index gauging new export orders rose to the greatest extent since November 2022.