India’s services sector stuttered in September as new business and output growth grew at the slowest pace since March 2022, as per the S&P Global India Services Purchase Managers’ Index (PMI) which dropped to 54.3 from August’s robust 57.2 level. A reading of 50 on the PMI indicates no change in business activity levels.
September marked the 14 th successive month of growth in services sector activity, but price pressures, an increasingly competitive environment and ‘unfavourable public policies’ restricted the upturn, as per the survey-based PMI.
The moderation in growth also dampened job creation from August, when services players had reported the highest new jobs in 14 years. Yet, there was a continued revival in business confidence, with sentiment at its highest level in over seven-and-a-half years in September.
