Services sector showed a contraction with the Indian Services PMI showing a drop for the month of Feb 2016. The month showed that data showed that services firms and goods producers alike registered weaker increases in activity. As a consequence, the Nikkei India Composite PMI Output Index dipped from January's 11-month high of 53.3 to 51.2, a reading that was well below the long-run series average (55.7).

Data indicated that output rose in four of the six tracked categories, the exceptions being Post & Telecommunication and Transport & Storage.

Although new orders at services firms continued to rise in February, the rate of expansion eased to the weakest since last November as firms reportedly faced strong competition for new work during the month.

A quicker increase in order book volumes in the manufacturing economy was in sufficient to prevent growth of private sector new or
ders from easing to a three-month low.

Subdued growth of new work led Indian service providers to work through their backlogs in February. Nonetheless, unfinished business
decreased only marginally.