Indian services sector returns to growth in September on stronger demand: PMI

In the time of distress, when the economy is still healing from the slump brought by demonetisation and GST roll out, the recent data indicating a revival in the service sector has come as a respite for the Indian economy. 
  
According to the business report released on Thursday, India ’s services companies broke their contraction streak in September as the sector regained its demand and pushed services companies to raise hiring at the fastest rate in over 6-years time period. The services companies had witnessed a contraction in their operations for the last two consecutive months. 
  
A sub-index on new business  that takes into account both domestic and foreign demand rose from 47.3 in August to 51.1 in September. While composite Purchasing Managers' Index, that measures both manufacturing and services activity, regained to its level above break-even  at 51.1  in September  from 49.0 in August . 

Meanwhile RBI retained its policy rate at near seven-year low of 6  per  cent  on Wednesday , and inflation hit a five-month high of 3.36 per cent in August.