November Services PMI Comes In Weak; 8-Months Job Shedding Streak Sees End

As per a private survey, India's services sector witnessed loss in momentum as demand weakened, thus again bringing to fore slow economic recovery from the pandemic blow-out.

The services sector Nikkei's or IHS PMI was dragged to 53.7 in November in comparison to 54.1 in October. Also, manufacturing PMI was down as demand and output both weighed during the last month.

November Services PMI Comes In Weak; 8-Months Job Shedding Streak Sees End

"Output and sales across the private sector have held up well, but there were some signs of growth losing momentum among goods producers and service providers," Pollyanna De Lima, economics associate director at IHS Markit, said in a release.

"Growth constraints, travel restrictions and low footfall as consumers opt to stay home and avoid catching the disease remained key themes of the services PMI."

A composite PMI also fell to 56.3 from October's figure of 58 and while a sub-index tracking overall demand for services was above 50 for a second month the pace of expansion softened from October. Also demand from outside India remained subdued as fresh lockdowns in several countries led to a decline in demand.

Also, on the job front, there was seen an end to an eight month streak in shedding job. Besides, prices and input costs remained on the higher side as the economy continues to

struggle with low growth and high inflation.
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