Hit by low demand, service sector growth declines to 4-month low in Sept

Low demand, little order growth and intensifying price pressures meant that services activity in September grew at the sloawest pace in four-months, according to the widely tracked Nikkei India Services Purchasing Managers Index (PMI).

Services PMI for September fell to 50.9, down from 51.5 in August. The 50-point mark separates expansion from contraction. Despite expanding for the fourth straight month, the service sector saw broad stagnation in both new and existing business in the latest month.

Companies reported that market conditions were underwhelming amid a lack of demand at a time of generally higher prices.

Underlying growth in activity and new work remained strongest in the Information & Communication category. In contrast, finance & insurance and business services categories saw gains.