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InstaForex - Official partner of Dragon Racing

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InstaForex - Official partner of Dragon Racing

2020.12.0309:36:00UTC+00India Service Sector Growth Slows In November

India's service sector activity rose at a softer pace in November, survey results from IHS Markit showed Thursday.

The IHS Markit services Purchasing Managers' Index fell to 53.7 in November from 54.1 in October. Economists had forecast a score of 55.5. Any reading above 50.0 indicates expansion in the sector.

New business inflows rose for the second straight month in November and total new work increased. New export orders declined sharply in November.

International sales fell for the ninth month in a row and outstanding business increased further.

The pace of backlogs accumulation quickened. The employment increased in November, with the rate of employment rising marginally.

Input prices continued to rise in November and selling prices rose at an above trend rate. The latest growth was the quickest since July 2017.

The business confidence in the next 12 months increased and the overall degree of optimism improved to the highest in nine months. Positive sentiment increased by hopes that vaccine for Covid-19 will be rolled out.

The survey showed that the composite output index, which combines services and manufacturing output, fell to 56.3 in November from 58.0 in the previous month.

"Low interest rates aimed at mitigating the negative impacts of COVID-19 on the economy and the latest rise in services employment are supportive factors for domestic demand," Pollyanna De Lima, an economics associate director at IHS Markit, said.

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