05.12.202305:57:00UTC+00India's Service Sector Growth At 1-Year Low

India's service sector continued to expand strongly in November on easing cost inflation and favourable demand trends, though the rate of growth was the slowest in one year, survey data from S&P Global showed on Tuesday.

The services purchasing managers' index fell to 56.9 in November from 58.4 in October. However, a score above 50 indicates expansion in the sector.

The overall strong expansion was largely attributed to favourable demand trends and new business gains, survey participants revealed.

New business gains continued to increase at a sharp pace and above the series trend, led by new client wins, demand strength, and favourable market conditions. Nonetheless, the pace of growth softened to the weakest since November last year.

Data showed that the latest increase in new export orders was moderate and the slowest since June.

On the price front, input prices rose further in November, but at the weakest pace in eight months. Selling price inflation also moderated to the lowest since March.

Employment marked a further month of increase, but the rate of job creation was marginal and the weakest in seven months.

Despite rising inflation expectations, businesses remain confident about the coming 12 months.

The composite output index dropped to 57.4 in November from 58.4 in October, indicating the slowest rise in private sector activity across India for a year. Manufactures logged a quicker rate of growth, while services saw the slowest upturn in twelve months.