The services purchasing managers’ index, or PMI, rose 50.4 in July from 49.7 in June. Readings above 50 indicate expansion in the sector.
New export orders dropped for the first time since September last year and foreign demand client decreased marginally.
Employment declined for the third straight month in July due to weaker underlying demand. Outstanding business decreased at the fastest pace.
Input cost inflation rose in July, for the first time since January’s VAT-driven spike and was the sharpest for three months. The inflation was relatively muted in the series history and the cost burden increased, IHS Markit said.
Business expectations increased at the beginning of the third quarter in July.
The composite PMI rose to 50.2 in July from 49.2 in the previous month.