India's services growth picks up in August

BENGALURU: India's dominant services sector accelerated slightly in August ​but persistently subdued new ​business kept overall activity near its weakest ​in more than four years, a survey showed, though firms ramped up hiring at the fastest pace in over a year.HSBC's India Services ‌Purchasing Managers' ⁠Index (PMI), compiled ⁠by S&P Global, rose to 54.1 in August from July's 53.3, but ​was slightly lower than a preliminary estimate of 54.5.Also read: 7.8% slam dunk! 'Dead' economy proved to be quite alive and kicking<iframe src="https://economictimes.indiatimes.com/dynamicchart?tab=SERPMI&year=10&type=line" width="100%" height="520" frameborder="0" scrolling="yes" border="0"></iframe>A PMI ​above 50.0 signals expansion in activity. However, the headline reading was fractionally below its long-run average. New business - the survey's ​primary demand indicator - grew at the second-slowest ⁠pace in ‌over four years.International demand offered ​limited support ​as new export orders expanded at a broadly ⁠similar rate to July.On the labour ​front, services firms hired at the fastest rate ​in 15 months suggesting some confidence remains.However, business confidence was below its long-run average for a second month although firms were cautiously hopeful market conditions and demand would improve.A Reuters poll showed Asia's third-largest economy ‌growing 6.7% this fiscal year, weighed down by elevated oil prices and a weak rupee, pointing to ​a slowdown ​from solid 7.8% ⁠growth last quarter that beat expectations.Cost pressures ticked up modestly. Prices charged to clients rose at the fastest pace since ​March with firms passing on higher operating expenses.India's Composite PMI, which combines services and manufacturing, held flat at 54.3. A quicker services expansion was needed to hold the composite steady as manufacturing growth slipped to a five-year low.