India's private sector growth eased in September, as both services activity and manufacturing production expanded at slower rates, survey figures from IHS Markit showed Wednesday.
The Nikkei Composite Purchasing Managers' Index, dropped to 52.4 in September from August's 42-month high of 54.6. However, any reading above 50 indicates expansion in the sector.
The Services Business Activity Index also fell to 52.0 in September from 54.7 in the preceding month.
New business received by Indian services firms increased only marginally in September on competitive pressures and unfavorable weather conditions. The upturn in order books at manufacturers also lost some momentum.
Contributing to higher backlogs was broadly stagnant staffing levels at services firms and manufacturers during the month.
On the price front, input costs faced by service providers climbed in September, after falling in the prior two months. Purchase price inflation at manufacturers picked up, but remained below its long-run average.
"In response, private sector companies raised their own prices for the second straight month, although inflation remained relatively soft," Pollyanna De Lima, economist at IHS Markit, and author of the report, said.
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