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India's services sector growth moderates in November, employment rise fastest since 2005
Services PMI: The job jump reflects improving business confidence in the sector, a rise in new orders, and strong growth in international demand. Also, higher food and labor costs pushed input and output prices to the fastest rates in 15 months and nearly 12 years, respectively. Let's know more about the PMI.
A monthly survey on Wednesday, says that India's services sector PMI fell marginally to 58.4 in November, despite robust employment growth this month. The seasonally adjusted HSBC India Services Business Activity Index fell marginally to 58.4 from 58.5 in October, as sales growth slowed. Last month, the country's services PMI managed to recover from its 10-month low.
In the language of the Purchasing Managers' Index (PMI), a reading above 50 indicates expansion, while a reading below 50 indicates contraction. "India recorded a services PMI of 58.4 in November, only marginally lower than the previous month's 58.5. During November, employment in the services sector grew significantly, the fastest since the survey began in 2005," said Pranjul Bhandari, chief India economist at HSBC.
"The job jump reflects improved business confidence in the sector, a rise in new orders, and strong international demand. At the same time, higher food and labor costs pushed input and output prices to the fastest rates in 15 months and nearly 12 years, respectively," Bhandari said.
