S&P India services sector PMI growth falls to 4-month low in July

The seasonally adjusted S&P Global India Services Purchasing Managers’ Index Business Activity Index fell from 59.2 in June to 55.5 in July, pointing to the slowest rate of growth in four months.

India's services sector lost momentum in July as demand was curtailed by competitive pressures, elevated inflation and unfavourable weather, a monthly survey said on August 3.

The seasonally adjusted S&P Global India Services Purchasing Managers’ Index (PMI) Business Activity Index fell from 59.2 in June to 55.5 in July, pointing to the slowest rate of growth in four months.

For the 12th straight month, the services sector witnessed an expansion in output. In Purchasing Managers' Index parlance, a print above 50 means expansion while a score below 50 denotes contraction.

As per the survey, service providers that reported higher sales in July mentioned favourable demand conditions and fruitful advertising. However, growth was dampened by fierce competition and unfavourable weather, survey participants said.

According to Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, there was a "noticeable loss of momentum for the Indian service economy as demand was somewhat curtailed by competitive pressures, elevated inflation and unfavourable weather. Both output and sales increased at the weakest rates for four months".

“The domestic market remained the key source of sales growth as international demand for Indian services worsened further,” the survey said.