For Quick Alerts
For Daily Alerts

PMI: Service Sector Activity Contracts For The Second Straight Month

By Staff

On Tuesday, a private business survey showed that India's activity in the services sector contracted for the second straight month in October on muted demand.

PMI: Service Sector Activity Contracts For The Second Straight Month

Despite an increase in the Nikkei/IHS Markit Services Purchasing Managers' Index (PMI) to 49.2 in October from 48.7 in the previous month, the index has remained below the 50-mark threshold for the second consecutive time.

The 50-mark separately the index from contraction and expansion in growth.

Two consecutive months of contraction was previously seen in August 2017, immediately following the implementation of GST (Goods and Services Tax) regime.

On 1 November, the manufacturing PMI was reported at 50.6 for the month of October, a two-year low for growth in manufacturing activity in the country.

The composite index, that considers activity in manufacturing as well as services, for October, fell to its more than two-year low of 49.6.

"It's somewhat worrying to see the Indian service sector stuck in contraction, as firms react to muted demand by lowering business activity," said Pollyanna De Lima, principal economist at IHS Markit, in a press release.

Future expectations have also seen a downward revision for the sector, as per the survey.

Read more about: services pmi pmi
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more