look news india
Mumbai: On one hand, the manufacturing purchasing managers' index (PMI) in the country fell to a three-month low in August, while the services PMI rose to a five-month high, indicating that demand for services remained strong.
The SSBC India Services PMI rose to 60.90 from 60.30 in July as demand remained resilient and inflation pressures eased. The August PMI is the highest since March of the current year. The services sector PMI has consistently remained above 50 since August 2021.
The report released said that the reason for PMI is the increase in new orders from the domestic market. Employment levels in the service sector also remained strong, although hiring was marginally lower than in July. International demand also remained strong, but growth in export orders was slow, indicating weak global demand. The overall outlook remains strong but business confidence has declined.
In contrast to the services sector, the August manufacturing PMI fell to a three-month low of 57.50. It is worth mentioning here that the service sector has a higher share in the country's gross domestic product (GDP) than the manufacturing sector.
The services sector mainly consists of banking, insurance, real estate, telecommunications, healthcare, education, tourism and IT.