PMI Service Sector: India’s service sector activity fell to a seven-month low in October. This decline has occurred due to the softening of production and demand amid competitive conditions and price pressure. The seasonally adjusted S&P Global India Services PMI business activity index reached 58.4 in October. It had reached a 13-year high of 61 in September.
Expenses of service companies increased in October
Services companies in India reported a rise in their expenses in October, which they attributed to higher costs of food, fuel and employees. Meanwhile, the S&P Global India Composite PMI Output Index stood at 58.4 in October, which was 61 in September.
The October data showed the second-fastest growth in international contracts awarded to Indian services companies since the series began in September 2014. Survey respondents noted gains from customers in Asia, Europe and the Americas.
What is PMI less than 50 scores mean?
In the language of the Purchasing Managers’ Index, a score above 50 means expansion in activities and a score below 50 means contraction. This survey is based on the responses to a questionnaire sent to about 400 companies in the service sector.
PMI refers to the Purchasing Managers Index. It is an economic indicator that provides a snapshot of the economic health of the service sector within a specific country. The index is typically presented as a single number, with a value above 50 indicating expansion in the sector, and a value below 50 indicating contraction.
PMI data for India is released by S&P Global.