Mumbai: Weak demand conditions along with a rise in inflationary pressures eased growth of India’s service sector output during September, a macro-economic data showed on Thursday.
Accordingly, the seasonally adjusted Nikkei India Services Business Activity Index declined to 50.9 in September from 51.5 in August.
An index reading of above 50 indicates an overall increase in economic activity and below 50 indicates an overall decrease.
Consequently, the seasonally adjusted Nikkei India Composite PMI Output Index posted a level of 51.6 during the month under review from 51.9 in August.
“Growth of India’s services economy spluttered during September amid reports of faltering demand for services. And despite a slight pick-up in manufacturing output growth during the month, overall private sector activity rose at the weakest rate since May,” said Paul Smith, Economics Director at IHS Markit, and author of the report.
“Rising price pressures were cited as a factor weighing on market activity, with reports from panellists of rising fuel and import prices, in turn mainly driven by the stronger US dollar.”
–IANS
