HSBC India Services PMI Eases To Five-Month Low In October

India’s services sectors showed signs of moderation in October, according to Flash HSBC India Composite PMI. The HSBC India Services PMI eased to five-month low of 58.9 from 60.9 in September, while the Composite index slipped to 60.4 from 61.

It is the first time since June that the HSBC Services PMI slipped below the 60 mark. In addition, this will mark the third instance this year that it fell below this mark. In comparison the services index was at 58.5 in the same month last year.

In contrast the HSBC Manufacturing PMI rose to 59.2 in October from 57.7 in September, driven by GST rate cuts and festive demand. This was also the first time in the last nine months that the manufacturing sector expanded faster than the services.

Employment in the month of October fell to 51.4 in comparison to 51.9 in the month of September. In prices charges also fell in comparison to the earlier month. However, new business intake rose sharply. International demand for Indian services improved further as it signalled another rise in external sales.

The flash Composite PMI, which combines both sectors, also declined, indicating a slight slowdown in overall business activity. However, the index has stayed above the 60 mark, signaling the economy’s resilience.

New orders fell to 60.4 in comparison to 61.1 in September. The slowdown in growth was centred on the service economy as manufactures saw quicker rate of expansion.