Services sector activity in India fell to a one-year low in November on softer expansions in new work intakes and output, despite receding price pressures, a monthly survey said.
The S&P Global India Services Business Activity Index fell from 58.4 in October to a one-year low of 56.9 in November. Despite a month-on-month decline, the rate of expansion was stronger than its long-run average.
In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.
“India’s services sector has lost momentum midway through the third quarter, but we continue to see robust demand for services fuelling new business intakes and output.
“The current rates of expansion look very healthy when considering their respective long-run averages and the outlook for business activity remains bright,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
On the prices front, rates of both input cost and output charge inflation slipped to eight-month lows. “Fewer companies hiked their own fees as a result, an aspect that might provide a further boost to demand as 2023 draws to a close,” Lima said.
Services companies curbed recruitment to some extent amid broadly stable levels of outstanding business.
