Nov 5: The Nikkei India services Purchasing Managers’ Index, or PMI, rose from 51.6 in September to 53.0 in October, with the private sector activity showing the strongest expansion since July.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Manufacturing production accelerated in growth, as well as new business rising for an eight straight month. Growth of factory orders climbed to a four month high which prompted further expansion in private sector new business to the second-strongest in two years.
Pollyanna De Lima, Principal Economist at IHS Markit, which compiles the survey commented “a robust expansion in workforces — one of the best seen for over seven-and-a-half years — added to firms’ expenses. The waning of cost inflation, coupled with competitive pressures, resulted in only a marginal uptick in charges.”
Although October`s PMI showed improvement, concerns still remain. She added that “the sustainability of current market conditions and political worries both weighed on optimism and pose downside risks to growth.”