As of September 4, 2024, India’s service sector marked its 37th consecutive month of growth, driven by robust new order growth, according to the latest S&P Global report. The seasonally adjusted services purchasing managers index (PMI) rose to 60.9 in August, up from 60.3 in July, well above the 50.0 mark, indicating sustained expansion.
S&P Global’s report highlights that the expansion was largely fueled by domestic demand, with the finance and insurance sectors leading in both output and new business growth. The sector also saw solid payroll growth, reflecting optimism about the economic outlook. However, while around 20% of service enterprises anticipated sales growth over the next 12 months, some firms expressed concerns about rising competitive pressures.
Input-cost inflation remained an issue, driven by higher food, labor, and transportation expenses, though the overall rate of inflation was at its lowest since August 2020.
In addition to the services PMI, S&P Global reported a composite PMI (covering both the services and manufacturing sectors) of 60.7, unchanged from July, indicating broad-based economic expansion.
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