September PMI Index Shows Quickest Service Sector Growth

Service Sector Growth

Amidst all the gloomy news of the rupee hitting a new low every day and foreign investors fleeing the nation’s markets, Monday brought in some cheery news for the Indian economy.

The nation’s services sector expanded at the quickest pace in October after July. This was mainly on account of the rising number of new business orders that led to expansion in the workforce. This was revealed in the findings of a monthly survey on Monday.

The Nikkei India Services Business Activity Index, which is seasonally adjusted, increased to 52.2 in October. In September it stood at 50.9.

The PMI index for services has seen an expansion for five months in row so far. It is said that PMI more than 50 indicates an expansion and one below 50 indicates contraction.

As per panelists, better flows of orders helped prop up the pick-up in output against the backdrop of good market conditions, fruitful advertising, and increased client bases.

Further, as far as job growth is concerned, Indian service providers added to their payrolls. As a result, the job sector saw the second-strongest rise in employment since March 2011.

There has been good news on other fronts too. The Nikkei India Composite PMI Output Index which factors in both the services and manufacturing sector also rose to 53 in October from 51.6 in September. This was an indication of the most robust growth in the private sector after the month of July.

Meanwhile, cost-inflationary pressures eased thereby bringing about reduced surge in selling prices.

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Rohit Bhisey

An AVP at the Marketing department at Transparency Market Research, Rohit has his fingers firmly placed on the pulse of the business world. He has a keen eye for any new development that could rock our world. He is adept at strategizing to boost web traffic and generate new leads. He is also an expert in Google Analytics, something which he feels could go a long way in getting sites more traction by providing necessary insights. Rohit is a Bachelor in Computer Science from the Pandit Ravishankar Shukla University and takes keen interest in writing news articles on technology, business, and healthcare.

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