05 Oct , 2021 By : monika singh
India’s service activity slowed in September and business confidence weakened though employment rose for first time in ten months, a private survey showed on Tuesday.
The seasonally adjusted India Services Business Activity Index posted 55.2 in September, falling from August's 18-month high of 56.7.
Amid reports of higher fuel, material, retail and transportation prices, average cost burdens faced by Indian service providers rose further in September. The overall rate of inflation softened to an eight-month low. Anecdotal evidence suggested that optimism was curbed by worries regarding inflationary pressures, according to the report.
“Companies still have spare capacity to accommodate for rising sales and hint that the recovery in employment is by no means guaranteed to continued,” said Pollyanna De Lima, Economics Associate Director at IHS Markit.
Data released last week showed India's manufacturing activity expanding for the third straight month in September. Taken together, the Composite PMI Output Index was at 55.3 in September, little-changed from 55.4 in August
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