Price pressures hit overall activity in August, causing services firms to hire at the slowest pace since November 2017. The Nikkei/IHS Markit Services Purchasing Managers’ Index declined to 51.5 in August from a 21-month high of 54.2 in July. In August, new business expanded at the weakest rate since May, with rising price pressures dragging on overall activity, causing services firms to hire at the slowest pace since November 2017. Inflationary pressures, alongside strong growth — India’s economy grew 8.2% last quarter — may help the Reserve Bank of India remain on a track of tighter monetary policy. Slower expansion in services activity, coupled with an unexpected decline in manufacturing growth, pushed the composite PMI to a three-month low of 51.9 in August.

Source: Mint September 05, 2018 06:45 UTC