Services PMI Data: There has been a brake on the pace of growth of the service sector in India and the Services PMI has fallen to its lowest level in a year in November. The S&P Global India Services Business Activity Index fell to a one-year low of 56.9 in November. Service PMI was at 58.4 in October. Meanwhile, the S&P Global India Composite PMI Output Index stood at 57.4 in November, compared to 58.4 in October.
Service PMI is continuously above the score of 50
The monthly Purchasing Managers' Index survey today revealed that despite the decline in prices in the country, a slowdown in new work assignments and output has been observed. Due to this, the development of service sector was affected and the growth rate remained low. However, despite seeing a month-on-month decline, the growth rate of the services PMI remains stronger than its long-term average.
Questions were sent to 400 companies
This survey is based on the answers to the questionnaire sent to about 400 companies in the service sector. In the Purchasing Managers' Index (PMI), a score above 50 means expansion while a score below 50 indicates contraction.
What the Economist has to say
Polyana de Lima, associate director at S&P Global Market Intelligence, said, "India's service sector has lost its growth momentum in the middle of the third quarter of financial year 2024. Although we are seeing strong demand for services, which will increase the speed of receiving new orders and completing work, but this does not support the increase in the pace of growth."
New recruitments in the service sector remained low
If we talk about prices, the rates of raw materials and completion of work slipped to the lowest level in 8 months. Service sector companies have stopped new recruitments due to business being largely at a stable level and it was disappointing on the employment front. This decline has occurred due to the slow pace of receiving new orders and completion of work.
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