India Services Slowdown

India's services sector growth picks up slightly in August but stays near four-year low.

India's dominant services sector saw a slight increase in growth in August, but the country's overall activity remained near its weakest in over four years, according to HSBC's India Services Purchasing Managers' Index (PMI), which indicates expansion in activity, rose to 54.1 from 53.3 in July, slightly lower than a preliminary estimate of 54.5. Despite this, firms increased hiring at the fastest rate in over a year and business confidence remained below its long-run average. The PMI's primary demand indicator, the survey's primary business indicator, grew at the second-slowest pace in over two years. However, business confidence was below its average for a second month. A Reuters poll showed India's economy growing 6.7% this fiscal year, largely due to high oil prices and a weak rupee, suggesting a slowdown from the previous year's strong 7.8% growth.

Topics