India's service sector continued to expand in August, albeit at a slower pace than in July, findings of a survey showed on Tuesday.

       According to S&P Global, India's services purchasing managers' index (PMI) came out to be 60.1 in August, lower than the 62.3 recorded in July. However, in June it was 58.5. In August 2022, India's services PMI was 56.2.

       A reading above 50 shows expansion in the sector.

       Notably, services firms indicated the sharpest upturn in new export business since the series started in September 2014. Asia Pacific, Europe, North America and West Asia were among the top sources of sales gains.

       Total new business increased for the twenty-fifth month in a row during August.

       "Indian services companies achieved a remarkable milestone in August, as they welcomed a series-record surge in new export business. Several regions contributed to the upturn, including Asia Pacific, Europe, North America and West Asia," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said.

       Also Read

       Services PMI declines to 61.2 in May amid rising inflationary pressures

       Manufacturing PMI hits 31-month high in May, helped by demand and output

       India manufacturing PMI grows to three-month high in August: S&P Global

       India's services PMI falls to 58.5 in June, lowest in three months

       Services PMI growth declines to three-month low of 58.5 as inflation weighs

       Around 500,000 taxpayers get I-T department alert for low advance tax

       G20 Sherpas focus on building consensus to finalise draft declaration

       India's space economy to reach $40 bn by 2040: Minister Jitendra Singh

       Govt sells 36,250 ton buffer onion in mandis of 12 states in last 3 weeks

       States use off-Budget borrowing to foot power subsidy bills: CSEP

       "However, favourable demand trends also led to the joint-fastest increase in prices charged for Indian services in over six years, which may prompt attention from policymakers and potentially delay cuts to the benchmark repo rate," De Lima added.

       Hiring activity across the service economy continued to expand halfway through the second quarter. The rate of job creation was moderate, but the strongest seen since last November.

       "Survey participants reported a blend of permanent and temporary staff recruitment on both part- and full-time bases," the report said.

       The overall level of positive sentiment climbed to its highest in the calendar year to date. Advertising, demand strength, plans to price competitively and a healthy number of client enquiries all boosted optimism in August, the report added.