STOCK MARKET BSE NSE

Services sector rebounds on rapid vax drive

The index rose to 56.7 in August, up from 45.4 in the previous month. A reading above 50 shows expansion and one below that means contraction.

Published: 04th September 2021 10:31 AM  |   Last Updated: 04th September 2021 10:31 AM   |  A+A-

Chart, arrow, economy, results, graph, retail, sales

For representational purpose. (Photo | Pixabay)

By Express News Service

NEW DELHI:  As the speed of vaccination increased and offices started partially opening up, services grew for the first time in four months to a one-and-a-half- year high in August, IHS Markit Purchasing Managers’ Index (PMI) survey says. However, it did not improve hiring as companies continued to reduce their workforce, though at a slower pace than earlier.

The index rose to 56.7 in August, up from 45.4 in the previous month. A reading above 50 shows expansion and one below that means contraction. Companies attribute it to the re-opening of many establishments, increased footfall and a rise in activities.

The report said that firms had ample capacity to deal with the rising new orders, but this was also a factor which prevented job creation. Companies mentioned strong inflow of new work and improved demand conditions.

Several firms indicated having sufficient workers to meet demand needs. Pollyanna De Lima, economics associate director at IHS Markit, said less upbeat news came from the survey’s employment measure, with services jobs shrinking again amid sufficient capacity among firms to meet current demand needs.

“There was at least a slowdown in the pace of job shedding,” she said. She added that another worrying aspect was the evidence that inflationary pressures continued to mount. Services firms said that higher fuel, retail and transport prices pushed up their expenses in August.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp