India’s services growth cools in July
05/08/2014 17:06
Services activity in India grew at a slower clip in the month of July as the pace of new business eased, signaling risks to the recovery in Asia’s third biggest economy. The gauge measuring services in India stood at 52.2 in July, down from 54.4 in the previous month, when the index surged to the highest level in 17 months, HSBC and Markit Economics said in a report on Tuesday. A reading above 50 signals expansion in services activity over the previous month. New business in the services sector rose for the third month on the trot in July, albeit at a slower pace, the report added. A combined gauge measuring Indian manufacturing and services grew at a slower pace in July 2014 even as manufacturing expanded at the fastest rate in 17 months. The gauge measuring private sector output fell to 53 in July from 53.8 in the previous month. Input costs faced by Indian services firms increased for a sixty-fourth consecutive month in July, a sign that inflation remains a major problem for the economy, keeping the RBI on guard. “Growth in the services sector softened in July after a big jump in the previous month. Nevertheless, the sector recorded its third consecutive month of expansion, following several months of subdued activity”, HSBC said.
05/08/2014 17:06
Services activity in India grew at a slower clip in the month of July as the pace of new business eased, signaling risks to the recovery in Asia’s third biggest economy. The gauge measuring services in India stood at 52.2 in July, down from 54.4 in the previous month, when the index surged to the highest level in 17 months, HSBC and Markit Economics said in a report on Tuesday. A reading above 50 signals expansion in services activity over the previous month. New business in the services sector rose for the third month on the trot in July, albeit at a slower pace, the report added. A combined gauge measuring Indian manufacturing and services grew at a slower pace in July 2014 even as manufacturing expanded at the fastest rate in 17 months. The gauge measuring private sector output fell to 53 in July from 53.8 in the previous month. Input costs faced by Indian services firms increased for a sixty-fourth consecutive month in July, a sign that inflation remains a major problem for the economy, keeping the RBI on guard. “Growth in the services sector softened in July after a big jump in the previous month. Nevertheless, the sector recorded its third consecutive month of expansion, following several months of subdued activity”, HSBC said.
