Print Edition - 2018-09-06  |  Money Digest

India’s services growth slows in August

NEW DELHI

Sep 6, 2018-

India’s dominant services sector expanded at a slower pace last month than in July as weaker demand and rising input costs kept a lid on hiring, a private survey showed on Wednesday. The Nikkei/IHS Markit Services Purchasing Managers’ Index declined to 51.5 in August from a 21-month high of 54.2 in July. The new reading was the lowest since May but remained above the 50-mark that separates growth from contraction for a third straight month. In August, new business expanded at the weakest rate since May, with rising price pressures dragging on overall activity, causing services firms to hire at the slowest pace since November 2017. “Input cost inflation in the service sector accelerated to the sharpest since November 2017, fuelled by higher oil-related prices,” Aashna Dodhia, an economist at IHS Markit, said in a release. (REUTERS)

Published: 06-09-2018 08:10

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