Services sector booming, but inflation worries loom
India's services sector grew at its fastest pace in 15 years this August, with the HSBC Services PMI shooting up to 62.9.
What's driving it? A big jump in new business, especially from international clients and exports, pushed demand higher than it's been in years.
Inflation concerns amidst services sector boom
This rapid growth isn't all smooth sailing: prices are rising too.
Output price inflation is now at its highest since 2012, and input costs are also up.
While businesses are feeling confident thanks to strong demand and smart advertising, hiring hasn't really picked up much yet.
Plus, with the Composite PMI (which tracks both services and manufacturing) hitting a 17-year high of 63.2, there's concern that these rising prices could mean overall inflation, which declined to an eight-year low of 1.55% in July, has reached its trough and may start spiking soon.