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India’s services PMI drops to slowest rate in 13 months

05 Dec 2012 Evaluate

Coming in sharp contrast to the manufacturing PMI, India’s services sector logged a growth that is at its weakest pace in over a year during November. The HSBC services Purchasing Managers' Index (PMI), fell to 52.1 in November from October’s 53.8, registering a 13-month low and suggesting an economy limping towards its slowest growth for the year in a decade.  The HSBC India Composite Output Index posted 53.2 in November, slightly down from 53.5 in October.

The report pointed out that though, manufacturing and services firms both signaled higher employment, the overall rate of job creation was only minor and the payroll numbers were increased just to meet production requirements. Manufacturing and services companies both recorded increases, although power shortages hampered manufacturing production. Services firms linked growth in new orders to rising demand, increased marketing and maintained quality of services.

November data signaled persistent inflationary pressure in the Indian private sector as input and output prices both increased. However, optimism which stood at three months high was signaled in the Indian service sector during November.

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