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Service Sector in India
Why is it in the news?
- As per a monthly survey, India's services sector activity increased at the slowest pace in a year in May.
- The disruptions arising from the elections in the earlier part of the month hampered growth of new work intakes.
More in the news
- The seasonally adjusted Nikkei India Services Business Activity Index fell to 50.2 in May, from 51.0 in April, pointing to the slowest growth rate in the current 12-month stretch of expansion.
- Despite the moderation, the services PMI was in the expansion territory for the 12th straight month.
- In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
- The survey however noted that there were signs that the slowdown may prove temporary as companies stepped up hiring and became more confident about future prospects.
- On the prices front, the survey noted that, firms were also helped by a lack of inflationary pressures in the sector.
Source
The Hindu.