<p>New Delhi: Growth of the services sector, which accounts for nearly 58% of India’s economy, slipped to a seven-month low in October, dragged by tapering domestic demand even though exports remained healthy, an industry survey conducted by S&P Global showed.</p><p>Purchasing Managers’ Index (PMI) for services fell to 58.4 in October, the lowest level since March. It stood at 61 in September. Services PMI had hit a 13-year high of 62.3 in July and remained above 60 level in July-September quarter.</p><p>Fierce competition and subdued demand for certain types of services dampened the overall expansion, S&P Global noted in its monthly report. </p><p>This, coupled with a decline in PMI manufacturing index earlier this week, indicates that the overall economic growth during the month may have taken a beating. </p>.Food processing sector a 'sunrise' industry, attracted Rs 50K crore in FDI in 9 years: PM Modi.<p>The PMI print above 50 indicates growth in the sector while below 50 shows contraction. Services PMI has been above 50-mark since August 2021.</p><p>“Several companies managed to secure new contracts, but some mentioned subdued demand for their services and competitive conditions,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence. </p><p>However, the demands for Indian services remained robust in the international markets. The companies that participated in the survey noted gains from clients in Asia, Europe and the US. October data highlighted the second-fastest upturn in international orders placed with Indian services companies since the series started in September 2014.</p><p>Prices charged for Indian goods and services rose further in October, thereby stretching the current sequence of inflation to nearly three years. “Having quickened from September, the rate of increase was marked and faster than its long-run average,” the report noted.</p><p>The rate of job creation lost steam in October due to subdued demands. The job creation by services companies in October was the lowest in three months. Additionally, the rise in inflation expectations dampened business confidence.</p><p>Surge in food, fuel and staff costs led to increased inflationary pressure during the month under review. “Although survey participants passed these additional cost burdens on to clients, permitted by demand strength, the rise in charges could have been the trigger of the deceleration in sales growth,” De Lima noted in the report.</p>
<p>New Delhi: Growth of the services sector, which accounts for nearly 58% of India’s economy, slipped to a seven-month low in October, dragged by tapering domestic demand even though exports remained healthy, an industry survey conducted by S&P Global showed.</p><p>Purchasing Managers’ Index (PMI) for services fell to 58.4 in October, the lowest level since March. It stood at 61 in September. Services PMI had hit a 13-year high of 62.3 in July and remained above 60 level in July-September quarter.</p><p>Fierce competition and subdued demand for certain types of services dampened the overall expansion, S&P Global noted in its monthly report. </p><p>This, coupled with a decline in PMI manufacturing index earlier this week, indicates that the overall economic growth during the month may have taken a beating. </p>.Food processing sector a 'sunrise' industry, attracted Rs 50K crore in FDI in 9 years: PM Modi.<p>The PMI print above 50 indicates growth in the sector while below 50 shows contraction. Services PMI has been above 50-mark since August 2021.</p><p>“Several companies managed to secure new contracts, but some mentioned subdued demand for their services and competitive conditions,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence. </p><p>However, the demands for Indian services remained robust in the international markets. The companies that participated in the survey noted gains from clients in Asia, Europe and the US. October data highlighted the second-fastest upturn in international orders placed with Indian services companies since the series started in September 2014.</p><p>Prices charged for Indian goods and services rose further in October, thereby stretching the current sequence of inflation to nearly three years. “Having quickened from September, the rate of increase was marked and faster than its long-run average,” the report noted.</p><p>The rate of job creation lost steam in October due to subdued demands. The job creation by services companies in October was the lowest in three months. Additionally, the rise in inflation expectations dampened business confidence.</p><p>Surge in food, fuel and staff costs led to increased inflationary pressure during the month under review. “Although survey participants passed these additional cost burdens on to clients, permitted by demand strength, the rise in charges could have been the trigger of the deceleration in sales growth,” De Lima noted in the report.</p>