Services growth hits 3-month high in July
03/08/2016 12:11
India’s services sector expanded at the fastest pace in three months in July 2016, underpinned by an upturn in demand, signaling a pickup in Asia’s third biggest economy.
Marking a thirteenth straight month in positive territory, the Nikkei India Services Business Activity Index climbed to 51.9 in July from 50.3 in June, with a reading above 50 signaling expansion, Markit Economics reported on Wednesday.
Incoming new work received by the country’s services providers rose the most since April in July driven by price discounts and improved marketing campaigns, signifying solid underlying demand in the economy.
Price pressures eased in the Indian services sector in July with output charges being cut for the first time in nine months in line with the decrease in input costs. Softening rate of inflation may offer room for the RBI to cut interest rates this month.
Optimism among services providers climbed to the highest level in four months in July on expectations of better economic conditions and planned increases in marketing budgets.
Further, a combined gauge of manufacturing and services rose to a three-month high at 52.4 in July from 51.1 in June.
“The Indian service economy started the second semester on a solid footing, posting its strongest performance since April and thereby indicating that underlying demand conditions remained reasonably firm”, the report added.
03/08/2016 12:11
India’s services sector expanded at the fastest pace in three months in July 2016, underpinned by an upturn in demand, signaling a pickup in Asia’s third biggest economy.
Marking a thirteenth straight month in positive territory, the Nikkei India Services Business Activity Index climbed to 51.9 in July from 50.3 in June, with a reading above 50 signaling expansion, Markit Economics reported on Wednesday.
Incoming new work received by the country’s services providers rose the most since April in July driven by price discounts and improved marketing campaigns, signifying solid underlying demand in the economy.
Price pressures eased in the Indian services sector in July with output charges being cut for the first time in nine months in line with the decrease in input costs. Softening rate of inflation may offer room for the RBI to cut interest rates this month.
Optimism among services providers climbed to the highest level in four months in July on expectations of better economic conditions and planned increases in marketing budgets.
Further, a combined gauge of manufacturing and services rose to a three-month high at 52.4 in July from 51.1 in June.
“The Indian service economy started the second semester on a solid footing, posting its strongest performance since April and thereby indicating that underlying demand conditions remained reasonably firm”, the report added.
