India’s services sector activity fell to a one-year low of 56.9 on the S&P Global Purchasing Managers’ Index (PMI), the latest data showed.
The composite PMI also fell to a one-year low of 57.4 from 58.4 in October, although it could have fallen further if the manufacturing index had not increased last month, S&P Global said.
Though the gauge of services sector activity fell from October, it was still above the key level of 50, which separates expansion in activity from contraction.
“India’s service sector has lost further growth momentum midway through the third fiscal quarter, 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 Market Intelligence.
“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,” De Lima added.
The output of the Indian services sector increased sharply in November at a rate “considerably stronger” than its long-run average – but still at the weakest pace since November 2022 – thanks to a rise in sales on the back of new client wins, demand strength, and favourable market conditions, according to the S&P Global’s survey data.
The survey however, pointed out that there was “widespread slowdowns in the increase in new orders.
Similarly, while overseas demand for Indian services improved, the rate of increase was the slowest since June, it said.
The net result on jobs was a gain, but the rate of increase was the weakest since April.
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