Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  India’s services industry growth hits 8-month high in October
BackBack

India’s services industry growth hits 8-month high in October

The Nikkei/Markit Services PMI rises to 53.2 in October from September's 51.3

The survey results are likely to provide some comfort to policymakers after a sister survey on Monday showed India’s manufacturing growth cooled to a 22-month low in October. Photo: MintPremium
The survey results are likely to provide some comfort to policymakers after a sister survey on Monday showed India’s manufacturing growth cooled to a 22-month low in October. Photo: Mint

Bengaluru: India’s services industry expanded at its fastest pace in eight months in October as new business rose with discounting probably stoking demand, a survey showed on Wednesday.

The survey results are likely to provide some comfort to policymakers after a sister survey on Monday showed India’s manufacturing growth cooled to a 22-month low in October.

The Nikkei/Markit Services Purchasing Managers’ Index rose to 53.2 in October from September’s 51.3, marking a fourth month above the 50-level that separates growth from contraction.

Growth was underpinned by a surge in new business, which hit its highest since February.

But the improved activity came as firms cut prices again in October - the second month in a row companies have had to resort to discounting to drum up new business.

A sub-index measuring prices charged was 49.6, just marginally higher than the previous month’s 49.5.

The last time firms reported cutting prices in consecutive months was in early 2009, when overall business activity was below-50 levels.

“Services companies saw a faster rise in new business than their manufacturing counterparts, with data implying that price discounts supported growth of new projects," said Pollyanna De Lima, economist at Markit.

Lower prices charged to consumers will probably help further cool India’s retail inflation, currently at 4.41%.

The Reserve Bank of India (RBI), however, is not expected to ease policy anytime soon after it cut the benchmark lending rate four times since January, most recently in September, in an effort to boost growth.

Firms reported no change in payrolls, with no new job additions being made since July. Reuters

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 04 Nov 2015, 10:44 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App