India’s Services Activity Expands for First Time in Four Months
Activity in India’s dominant services sector expanded for the first time in four months as pandemic restrictions were loosened, a survey showed Friday.
The Markit India Services PMI SA rose to 56.7 last month from 45.4 in July. The August reading is the highest since February 2020 for a sector that makes up more than half of India’s economy. A separate survey of factory managers earlier in the week showed manufacturing activity expanding for a second straight month.
These numbers together helped lift the composite index back to expansion territory at 55.4 in August, from 49.2 in July.
Improved performance by India’s two key economic engines is seen helping to foster a world-beating pace of growth this fiscal year for Asia’s third-largest economy. That should help ease pressure on the central bank, which has been keeping interest rates low to support a recovery despite stubborn inflationary pressures.
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