India’s services sector may have expanded at the slowest rate in a year on softening demand but showed resilience as output across the sector saw a sharp increase, a private survey showed on Tuesday.
The S&P Global India Services Purchasing Managers’ Index fell to 56.9 in November from October’s 58.4. A Reuters poll pegged a dip to 58.
The services sector accounts for over 50% of India’s gross domestic product (GDP).
“India’s service sector has lost further growth momentum … but we continue to see robust demand for services fuelling new business intakes and output,” noted Pollyanna De Lima, economics associate director at S&P Global.
“The current rates of expansion look very healthy when considering their respective long-run averages and the outlook for business activity remains bright in spite of optimism fading due to rising inflation expectations.”
(More to come)
