Service sector props up India amid factory downturn
03 Aug 2012
The services sector in India grew at a healthy pace in July, providing vital support for the economy as its manufacturing sector struggles with the global downturn, an HSBC study released today said.
India's services sector growth rate saw a slight fall in July but remained in the positive terrain for the ninth month in a row amid a rise in new orders and employment levels holding up, the survey said.
HSBC's services purchasing managers index (PMI) for July stood at 54.2, a little down from 54.3 in June.
Despite a 10 basis points dip, the index has kept above the 50 mark, indicating growth, since November 2011.
"Service sector activity grew at a steady pace in July, with growth in new orders and employment holding up," HSBC chief economist for India and ASEAN Leif Eskesen said.
Going forward, a moderation in output is likely as the pace of growth in new orders as also the business sentiment has slumped for the next 12 months.
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