Services PMI: Country's service sector reached its lowest level in 7 months, this is due to the slowdown in production and new business

S&P Global (agency providing service PMI) has released the PMI index data for October 2023. This time, PMI has fallen from 61 to 58.4 in October as compared to the month of September. According to experts, the reason for this is the decrease in manufacturing.

According to the data released by S&P, manufacturing in October has reached its lowest level in the last 7 months. The Reserve Bank of India decides interest rates on the basis of PMI index data. If there is a boom in the manufacturing sector, it leads to the economic development of the country. PMI index rates also indicate the employment situation of the country.

The S&P Global India Services PMI business activity index fell to 58.4 in October from a 13-year high of 61 in September. This marks the slowest rate of expansion since March. In the language of the Purchasing Managers' Index, a print above 50 means expansion while a score below 50 indicates contraction.

“Many companies managed to win new contracts, but some cited lower demand for their services and competitive conditions,” said Polyana de Lima, economics associate director at S&P Global Market Intelligence. Exports were particularly strong in October last month. The region was the second-highest growth in the series in its nine-year history, with new trade gains from Asia, Europe, and the Americas."

Charged prices for Indian goods and services rose further in October, extending the current streak of inflation to nearly three years. Service companies in India reported a rise in their expenses in October, which they attributed to higher costs of food, fuel, and employees.