New Delhi: The growth of services sector activity slowed down in August due to weak demand, according to a monthly survey.
The IHS Markit India Services Business Activity Index declined to 52.4 in August from 53.8 in July, showing a slower rate of increase in output.
The index, however, remained above 50 which marks expansion while a score below shows contraction.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI), released earlier this week, fell to 51.4 in August, its lowest mark since May 2018, from 52.5 in July, as most survey indicators fell since July to signal a widespread loss of momentum.
“The weaker PMI readings for India’s service sector match the trend noted in the manufacturing industry, bringing unwelcome news of a cooling economy halfway through the second quarter of fiscal year 2019-20,” said Pollyanna de Lima, Principal Economist at IHS Markit.
The IHS Markit India Composite PMI Output Index, that maps both the manufacturing and services industry, fell from 53.9 in July to 52.6 in August.
Notwithstanding the decline, the composite PMI Output Index was in expansion territory for the 18th month in a row.
Growth of aggregate new orders moderated from July and was modest. Private sector jobs rose further in August, but the pace of expansion was slower.
(Courtesy: With Agency Inputs)