New Delhi, September 3 (IANS). India's services sector has seen strong growth in August and HSBC India Services PMI has increased to 54.1. Due to this, employment growth has also been at the highest level in 15 months. This information was given in a private survey released on Thursday.
Earlier in July, HSBC India Services PMI was at 53.3.
In the survey, service providers attributed the growth to good demand and increase in new business due to market initiatives. During this period, demand from international customers has also remained intact and new export orders have increased almost at the same rate as in July.
According to HSBC data, Indian service providers received new export orders from Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka and UAE in August.
Furthermore, employment in India's service economy has grown rapidly. About 11 percent of the companies surveyed reported that their number of employees had increased. Additionally, the rate of job creation is the highest it has been in the last 15 months as companies improve their customer service, sales and digital operations.
HSBC's Chief Economist in India Pranjul Bhandari said that service sector activity grew rapidly in August, which was contributed by better output and new business.
“Employment grew rapidly and job creation reached its highest level in 15 months,” Bhandari said. He also said that price pressure increased very little.
Additionally, the HSBC India Composite PMI Output Index stood at 54.3 in August, the same as in July, as robust growth in the services sector offset the slowdown in manufacturing.
HSBC data also showed that total employment rose at the fastest time in 14 months. Strong hiring in the service sector has more than compensated for the lack of employment in manufacturing.
Net new order volumes also rose sharply, while composite input cost inflation fell to a seven-month low.
–IANS
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