Services PMI jumps to 18-mth high in Aug as vax access, footfall improve

If the trend persists in September, it may give further boost to services growth in the country in Q2FY22

Services, the dominating sector of India's economy, grew for the first time in four months to a one and a half- year high in August as vaccine access improved and consumer footfall rose following reopening of several establishments, showed IHS Markit Purchasing Managers' Index (PMI) survey. However, companies continued to reduce their workforce, though at a slower pace than earlier.

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

Apart from re-opening of many establishments and increase in footfall, companies also attributed the rise