Increase in new business strongest since June 2017; inflation pressures still ‘high’
India’s services sector activity remained in the growth territory for the second consecutive month in July, as business activity witnessed the strongest growth since October 2016, amid improved demand conditions, said a monthly survey. The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.6 in June to 54.2 in July, as new business rose at the fastest pace since June 2017.
“There are some warning signs reflected by PMI price data. Although overall input cost inflation softened from June’s near four-year high, service companies faced the fastest rise in input costs since March amid reports of high oil prices,” she said. “An uncertain global climate, currency weakness and strong inflation may continue to place pressure on the central bank to hike interest rates over the coming months,” she added.
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