This is the 22nd consecutive month that the manufacturing PMI has remained above the 50-point mark.
India's services sector activity continued to expand in September, supported by favourable underlying demand amid the easing of COVID-19 restrictions, but lost some momentum from August's 18-month high level, a monthly survey said on Tuesday. The seasonally adjusted India Services Business Activity Index fell from 56.7 in August to 55.2 in September, but remained well above its long-run average. "Despite easing from August, the rate of expansion was marked and the second-fastest since February 2020," the survey said.
Service providers' confidence with regard to the 12-month outlook for business activity remained positive.
Input prices rose at their fastest rate in 14 months but manufacturers absorbed much of the increase
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) stood at 47.9 in July, down from 50.9 in June, its lowest mark since February 2009, and highlighted the first deterioration in business conditions in 2017 so far.
The HSBC Services Purchasing Managers' Index eased to 53.0 in March from February's eight-month high of 53.9.
Regarding employment, the manufacturing sector hiring remained broadly unchanged.
A reading below 50 means contraction in the sector.
The survey noted that advertising campaigns supported the increase in new work growth in the sector amid competitive pressures.
Sluggish rise in new business inflows and a cautious approach to costs reportedly led Indian manufacturers to shed jobs in September.
A reading above 50 indicates expansion, while a score below this mark means contraction
The HSBC Manufacturing Purchasing Managers' Index fell to 51.3 in April from March's 52.1
The Nikkei India Services Purchasing Managers' Index, which tracks services sector companies on a monthly basis, stood at 52 in September, down from August's 43-month high of 54.7, pointing to a slower and moderate rate of expansion.
The services sector had slipped into contraction in July as confusion caused by the GST rollout triggered a dip in new business orders.
The Nikkei India Services PMI posted above the critical 50.0 level, which separates growth from contraction, for the fourth month running in May.
A reading below 50 means contraction in the sector.
With factory production, activities across the private sector saw the biggest drop in over three years
Manufacturing production growth eased in May, which combined with the slowdown in services resulted in a weaker increase in private sector output, the survey said.
On the employment front, services employment was unchanged in April.
The index went below the crucial 50 mark.
The Nikkei India Services Purchasing Managers' Index, which tracks the services sector firms on a monthly basis, stood at 50.3 in February, up from 48.7 registered in January.
The improvement in business conditions promoted job creation, while confidence towards the year-ahead outlook for activity was at a four-month high during March.
A reading above 50 means the sector is expanding, while a reading below 50 means contraction.
The Nikkei India Manufacturing PMI dipped from 50.3 in November to 49.1 in December.
The expansion in total new orders was supported by greater sales to international markets
While manufacturing firms cut jobs for the first time in 20 months to sharply reduce costs, services providers continued their hiring spree.
On the other hand, jobs increased for the 10th straight month in the manufacturing sector, albeit only slightly
The mismatch between PMI and core sector could also be due to the fact that while core sector is calculated year-on-year, PMI is calculated month-on-month.
The NITI Aayog's vice-chairman's charge holds ground.
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