Growth in India's services industry eased to a six-month low in September, led by a cooling in demand amid high inflation, a private survey showed.
The S&P Global India services Purchasing Managers' Index fell to 54.3 in September from August's 57.2, lower than the Reuters poll expectation of 57.0.
Hiring in the sector continued for the fourth month but fewer jobs were created compared to August.
But "an upturn in inflation could damage consumer spending, dampen business confidence and test the resilience of the Indian service sector in the coming months but, at least for September, service providers were strongly upbeat towards growth prospects," she said.
The Reserve Bank of India (RBI) has raised interest rates by 190 basis points since May to stem inflation and offset some of the effects of aggressive U.S. Federal Reserve hikes that have weakened many currencies, including the rupee.
Employment generation also saw some consolidation, but has remained above 50 for four straight months," Barclays said in a note.

Source - Mint

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