Service activity grows in August FY23

Employment witnessing the sharpest rise in more than 14 years

September 6, 2022

The S&P Global India Services Purchase Managers Index (PMI) Business Activity Index rose to 57.2 in August FY23

Uptick in growth for new businesses as well as firms continuing to benefit from the removal of Covid-19 restrictions contributed to the rise of the activity

Employment picked up quickly, due to higher sales and optimistic growth projections

Services companies expect output growth over the next year, with sentiment rising to its highest level in over four years

India’s services activity grew in August due to employment witnessing the sharpest rise in more than 14 years according to the S&P Global India Services PMI Business Activity Index. The index rose to 57.2 in August FY23, compared with 55.5 in July FY23, indicating a rebound in growth. 

Experts said that an uptick in growth for new businesses as well as firms continuing to benefit from the removal of Covid-19 restrictions contributed to the rise. Other factors include favourable demand conditions and successful advertising strategies by organizations. 

The experts further added that outputs for new business, transport, information & communication, and finance & insurance have increased. Employment picked up quickly, due to higher sales and optimistic growth projections. Another reason why services activity performed well in August, was the increase in prices of services. 

As per media reports, the India Composite PMI Output Index rose to 58.2 from 56.6 in July. According to a survey report by S&P, the manufacturing and service sectors have ramped up their operations, leading to leading to the fastest upturn at the composite level for nine months. 

Further, the Services companies expect output growth over the next year, with sentiment rising to its highest level in over four years. 
Source: Economic Times