India’s services sector expanded at a faster pace in August, supported by resilient demand and a sustained rise in new business, while employment growth accelerated to a 15-month high, according to HSBC India Services PMI data released on Thursday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 54.1 in August from 53.3 in July, indicating a stronger pace of expansion.
Service providers reported sustained demand and increased new business inflows during the month, supported by marketing initiatives and stronger customer demand.
International demand also remained supportive, with new export orders rising solidly at a pace broadly similar to July. Firms reported stronger business from customers in Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka and the UAE, the survey showed.
Employment across the services sector also increased markedly, with around 11 per cent of respondents reporting higher staffing levels. The pace of job creation was the strongest in 15 months, with companies citing the need to support customer service, sales and digital operations.
“Employment increased at a marked rate, with job creation reaching a 15-month high,” HSBC Chief India Economist Pranjul Bhandari said, adding that price pressures picked up only modestly.
The HSBC India Composite PMI Output Index stood at 54.3 in August, unchanged from July, as faster growth in services offset a slowdown in manufacturing.
Aggregate employment increased at its fastest pace in 14 months, with robust hiring in services more than offsetting a decline in manufacturing employment.
Aggregate new order volumes also rose at a faster pace, while composite input cost inflation eased to a seven-month low.
(IANS Inputs)
