Indian Services Sector Returns to Growth After 3 Month Contraction
The services sector returned to the growth zone in February after three months of demonetisation- driven contraction but recovery was 'mild' and business confidence remained subdued, a monthly survey showed today.
Besides, higher input costs forced companies to hike prices and the rising inflationary pressure may result in the Reserve Bank keeping away from any interest rate easing in the immediate future. The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector output on a monthly basis, stood at 50.3 in February, up from 48.7 registered in January.
After slipping to a near three-year low last November, which was the first monthly drop in output since June 2015, the headline index edged has now edged back above the 50.0 mark, which separates expansion...