India's service sector continued to demonstrate robust expansion in September, marking over three years of consistent growth. The seasonally adjusted India services purchasing managers index (PMI) recorded a value of 57.7 in September, a decrease from 60.9 in August, yet still significantly above the 50-mark that indicates the difference between growth and contraction.
This information is derived from a monthly survey that highlights the service sector's performance. Participants in the survey attributed the increase in output for September to a combination of new business gains, favorable demand trends, and investments in technology. The finance and insurance service sub-sector in India showcased the strongest business environment during this period.
However, service sector export growth saw a moderate cooling in September. A key factor constraining total sales growth was the softer increase in new export orders. Despite this, some firms reported gains from regions including Asia, Europe, North America, the Middle East, and the US. In response to rising demand, service providers in India once again increased their payrolls.
Reports indicate that recruitment processes included both full-time and part-time workers, offering a mix of permanent and temporary contracts. Input price inflation in September remained below the long-term average, with service-sector charges for customers rising only modestly. Confidence among service providers regarding the 12-month outlook was evident, with expectations that demand conditions would remain favorable in the forthcoming year.
Moreover, the India Services September PMI was compiled from survey responses collected from 400 sector companies between September 9 and September 26. Additionally, the India Composite PMI, which combines data from both the manufacturing and service sectors, registered a decline to 58.3 in September from 60.7 in August, while still remaining well above the neutral level of 50..