Services October PMI at 3-month high; 3 key things to know

By: | Published: November 5, 2018 11:41 AM

October Services PMI: The country’s services sector expanded at the quickest pace in the month of October, registering a 3-month high number on rise in orders leading to strong workforce expansion, a monthly survey said.

Services PMI, Nikkei India, Services Business Activity Index, service economy, IHS Markit, economyIn PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. (Reuters)

October Services PMI: The country’s services sector expanded at the quickest pace in the month of October, registering a 3-month high number on rise in orders leading to strong workforce expansion, a monthly survey said. While Nikkei India Services Business Activity Index was recorded at 3-month high of 52.2 Vs 50.9 (MoM), India Oct Nikkei Composite PMI came at 53 Vs 51.6 (MoM). The services PMI recorded its rise for the fifth-straight month. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Robust economic growth

“The PMI surveys brought positive news of stronger economic growth at the start of the third quarter of FY 2018/19, together indicating a welcome rebound in private sector expansion from September’s four-month low,” said Pollyanna De Lima, Principal Economist at IHS Markit, and author of the report.

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Cost pressures eased

He also said that in the month of October, cost pressures eased out as service providers continued to report rising costs, especially for food and fuel. Even though the business sentiment remained positive, it was hindered by political uncertainty, the survey noted.

Job growth

The services sector also witnessed the second-strongest rise in employment since March 2011, survey showed.

Manufacturing PMI October

Meanwhile, the manufacturing sector activity in the country improved in the month of October as firms responded to robust order by scaling up production, input purchasing and employment, survey said Thursday. The Nikkei India Manufacturing Purchasing Managers’ Index strengthened slightly in October to 53.1, up from 52.2 in September, as sales rose from both domestic as well as foreign clients.

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