SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Services PMI contracts for second straight month in December to 46.8

04 Jan 2017 Evaluate

India's services industry contracted for the second straight month in December, as orders shrank amid a severe cash shortage. Also, backlogs continued to rise, while employment decreased fractionally. The seasonally adjusted Nikkei India Services Business Activity Index stood at 46.8 in December, little changed from 46.7 in November. The index slipped into contraction territory in November and remained in that zone as the rupee ban led to the sharpest fall in new business since September 2013. A reading above 50 indicates economic expansion, while below that points towards contraction.

As per the survey the input costs rose further, but efforts to boost demand led some firms to lower their charges. With factory production also falling, activity across the private sector economy as a whole dipped to the greatest extent in over three years. This was highlighted by the seasonally adjusted Nikkei India Composite PMI Output Index recording 47.6 in December, from 49.1 in November. The survey panel members widely blamed the deterioration in economic conditions on the rupee demonetisation, with concerns towards the speed of the recovery weighing heavily on sentiment.

The survey further stated that cash flow issues reportedly caused another increase in outstanding business among private sector firms, with backlogs rising for the seventh straight month (although only moderately). It added that Indian services provider’s signalled optimism on the 12-month outlook during December although the level of optimism has fallen to the third-lowest in over 11 years of data collection. Though, there are expectations of a rebound in demand in coming 12 months, worries towards the speed of the recovery following the cash recall, hampered confidence.


About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: