Service sector expansion in India slowest since November 2023, PMI figures released
New Delhi| The expansion of the service sector in India took place in September at the slowest pace since November 2023. HSBC India Services PMI survey has confirmed this. These figures are based on new business and sales and output globally. In September, the PMI index figure decreased to 57.7 compared to 60.9 in August. However, it was successful above the neutral mark 50.0 of the index.
HSBC India Services PMI showed that service sector growth in India grew at the slowest rates since November 2023 in terms of new business, international sales and production. The index price remained above the neutral mark of 50.0 in September according to the HSBC India Services PMI survey compiled by S&P Global. The headline figure, falling to 57.7 from August’s 60.9, indicated a softer, though still historically strong, rate of expansion.
The PMI index is measured between 0 and 100. Wherein a figure above 50 represents expansion while a figure below 50 represents contraction in the region. One reason for the slowdown in service sector growth in the month of September was the decline in new export orders. The rate of expansion in 2024 has been by far the weakest. Nevertheless, some firms made gains from Asia, Europe, North America, the Middle East and the US. According to the survey, margins of service companies are likely to decline further, as prices have also increased slowly due to rising inflation.
