Indian Services Sector Output Stabilised in Sept, But Job Losses Widen Due to Covid-19, Says Survey

On the prices front, input prices rose in September, with monitored companies citing higher fuel, meat and vegetable costs. The overall rate of inflation was at a seven-month high. Going ahead, firms are optimistic regarding growth prospects.

”In line with hopes that a vaccine for COVID-19 will be rolled out, companies were optimistic about the year-ahead outlook for business activity. September marked the first month since April in which service providers were confident towards growth prospects,” the survey said. Meanwhile, the Composite PMI Output Index, which measures combined services and manufacturing output rose from 46.0 in August to 54.6 in September, signaling a marked rate of activity growth across the private sector economy.

”Taking into account the performance of the manufacturing industry, a better picture of the Indian economy is painted. Private sector output expanded for the first time in six months during September, and at an above trend rate, while the increase in sales was the first since February,” Lima said. Lima further said the news will be welcomed by policymakers, particularly following the pandemic related 23.9 per cent contraction in GDP in the opening quarter of fiscal year 2020/21.