Services activity improves in September, PMI at 49.8 vs 41.8 in August

The seasonally adjusted India Services Business Activity Index rose for the fifth straight month in September, from 41.8 in August to 49.8.

The latest reading was indicative of broadly stable output across the sector. Monitored companies that observed growth commented on the reopening of business units amid the loosening of lockdown rules. Firms that reported a contraction mentioned the damaging impact of the pandemic on demand.

Signs of stabilisation in services are likely to provide more comfort to policymakers after a sister survey on Thursday showed India’s manufacturing expanded at its fastest pace in over eight years, suggesting business