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Nikkei India's services PMI rises 51.2 in August

Nikkei India's services PMI rises 51.2 in August

A separate index measuring non-manufacturing activity fell for a second month, slipping to 53.4 from 54.5 previously, reflecting slowing momentum in China's services sector. This was underpinned by faster intakes of new work received.

The PMI reading, given between 0-100, measures activity in the sector - anything above 50 signals growth, while anything below means contraction.

The stronger demand for exports saw companies expanding their production schedules and buying activity, while business confidence rose to its highest level for five months.

Robust export orders were driven by continued healthy demand from customers in Europe, the United States, China and Australia which, when combined with a brighter domestic backdrop, helped drive employment gains in the industry to a three year peak. "The historical weakness of the sterling exchange rate was also reported to have boosted export competitiveness".

Almost a third of companies saw a rise in purchase prices despite the overall rate tracking below record levels seen at the start of 2017, according to the report.

Input prices increased at a faster pace for the first time in 7 months while there was a slight slowdown in the rate of increase for output prices. The positivity was largely attributed to rising demand, new product launches, a stronger global economy and planned investment. "The rebound in August, led by the consumer goods, intermediate and capital goods sectors, suggests that manufacturing firms are now adjusting to the GST regime and that business is returning to normal", it added.

Taiwan's manufacturing survey saw the fastest growth in four months, while South Korea's exports beat expectations and posted their longest run of growth in nearly six years. "Having endured years of economic malaise, the latest data will be music to the ears of many concerned with Greek manufacturing", said IHS Markit economist Alex Gill.

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