PMI falls to 51.5 as new businesses grow slowly, export orders fall

Services growth hit slow lane in August

Growth in services activity fell in August as new business rose at a slower pace and export orders dropped, according to the widely-tracked Nikkei India Services Purchasing Managers’ Index (PMI) numbers released on Wednesday.

Services PMI slid to 51.5 in August, from the 21-month peak of 54.2 in July. The 50-point mark separates expansion from contraction. The sector has continued to remain volatile. In the 12 months to August, the sector contracted four times in the PMI measure.

Services activity had contracted in May as rising price pressure led to a decline in new business orders. However, the sector continued