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Services output saw a slight and softer expansion across the country in September, the latest reading of the Nikkei Business Activity Index showed. The index went down to 51.3 in September from 51.8 in August.
Reflecting its weakest rate of expansion in the current period of growth, the Nikkei India Composite PMI output index fell from 52.6 in August to 51.5 in September.
Services activity is expected to rise over the coming 12 months, with firms linking optimism to favourable government policies, a planned increase in marketing budgets, and hopes of better economic conditions.
Confidence drops However, the degree of confidence was the weakest registered in the survey’s history.
Commenting on the Indian Services PMI survey data, Pollyanna De Lima, economist at Markit, which compiles the survey, said: “India’s economy lost steam in September with growth fading across both the manufacturing and services sectors…”
Incoming work up Incoming new work at service providers rose for the third month in succession during September. However, the rate of expansion has eased since August. As a result, service providers maintained employment at broadly unchanged levels in September.
The input costs incurred by services firms decreased in September for the first time in ten months, with survey participants reporting lower petrol prices.
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