Breaking News

You are here » Indian-Commodity  :  Economy  :  Services PMI contracts to 48.5 in November


Services PMI contracts to 48.5 in November

India's services sector growth lost its momentum in the month of November, as sustained pain from the country's Goods and Services Tax (GST) regime triggered significant decline in demand and lower customer turnout. Even as the manufacturing sector received greater inflows of new work in the month, input cost inflation and unfavorable demand conditions, also pulled the index below the 50.0 no-change mark. The seasonally adjusted Nikkei Services Business Activity Index fell to 48.5 in the month of November from 51.7 in the month of October. The Nikkei India Composite PMI Output Index, which measures both manufacturing and services was also down to 50.3 in November from 51.3 in October.

According to the survey report, the service activity fell due to a drop in new business, weighed down by GST. Input cost inflation accelerated in November month, by rising at fastest pace since October 2013 and reflecting this burden, service providers increased their average selling prices in November. However, amid intensive competitive conditions, manufacturing companies could not fully pass higher cost burdens to their consumers. The sharpest rise in input prices was noted in chemicals, steel and petroleum products. 

However, in a positive development, staffing levels in the Indian service sector increased in November for a third month in succession, but at modest pace.  Besides, factory employment also grew at the fastest pace since September 2012 in response to stronger growth in new orders. The report also found that inflows of new works in the manufacturing sector quickened to fastest since October 2016.

Related News

View all news

CPI inflation hits 6-month high of 2.92% in April

India's retail inflation based on Consumer Price Index (CPI) continued northward journey for third straight month and inched up to a 6-month high of 2.92% in April 2019 due to a spike in food prices, including......

Indian economy to grow at 7% range in current fiscal: Subramanian

Chief Economic Advisor (CEA) Krishnamurthy V. Subramanian has said  that the Indian economy would grow at 7% range in the current financial year (FY20) powered by the effects of the strong structural......

Banks take 57% haircut in 94 cases resolved in FY19: ASSOCHAM-CRISIL study

A joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and rating agency CRISIL stated that banks have taken a huge 57% haircut in the 94......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......