India’s services sector growth accelerates to 5-month high

BENGALURU, Sept 04 (Reuters): Activity in India's dominant services sector rose at its fastest pace in five months in August as demand remained resilient amid easing inflationary pressures, a survey showed.

The HSBC final India Services Purchasing Managers' Index, compiled by S&P Global, rose to 60.9 in August, up from July's 60.3 and exceeding a preliminary estimate of 60.4.

The reading, which has topped the 50-mark separating growth from contraction since August 2021, was above the long-run average and marked the highest level since March.

"This growth was largely fuelled by an increase in new orders, particularly domestic orders," said Pranjul Bhandari, chief India economist at HSBC.

The new business sub-index rose slightly from July to a four-month high and was above its historical average.

International demand was also solid but the pace of growth softened sharply from July to a six-month low.