India s services sector fell from 59.2 in June to 55.5 in July, marking the slowest growth rate in four months, according to S&P Global India Services PMI Business Activity Index.
The latest reading indicated the slowest growth rate in four months, falling from 59.2 in June, the highest level in over 11 years. There were continued improvements in sales, the offering of new services and workers taking on overtime, and the indication of higher business activity by companies that signalled higher business activity. The report said that the rise was curbed by price pressures and US dollar strength.
The recovery of the Indian service sector lost momentum last month due to weaker sales growth and inflationary pressures that restricted the upturn in business activity. Weaker recovery was supplemented by retreating price measures, while input costs increased at the slowest rate since February.
There were a lot of positives in the latest results. Pollyanna De Lima, Associate Director, at S&P Global Market Intelligence, said business activity continued to rise strongly, with an increase in new business as the offering of new services and marketing efforts bore fruit.
The domestic market was the main source of sales growth as international demand for Indian services worsened, according to the report. The latest drop was the lowest in six months.
The composite PMI fell from 58.2 in June to 56.6 in July, the slowest increase since March, according to S&P.
Manufacturing led the upturn, with the quickest rise in production since November, while the growth of services activity decreased to the weakest in four months. The manufacturing industry picked up new business growth while the service economy was slowing down. Sales increased sharply at the composite level but at the weakest pace in four months, it said.
In July, employment for both goods and service providers went up only marginally, with expansion rates mostly similar for goods producers and service providers. It said that purchase prices and selling charges at the composite level rose at the slowest rates since February and March.
In June there was 2 growth in biz activity.