India’s services sector growth at six-month low: HSBC
05 Nov 2012
India's services sector in October registered the slowest pace of growth since April amid a decline in new orders and hiring levels, an HSBC survey said.
The HSBC's Services Purchasing Managers Index (PMI) for October declined significantly to 53.8 in October from 55.8 in September. However, the index has kept above the 50-mark, which indicates expansion, Since November 2011.
The HSBC India Composite Output Index, which maps both services and manufacturing activity, stood at 53.5 during the month, down from September reading of 55.
"The services sector slowed in October, but remained firmly in expansionary territory. Growth in new orders eased slightly and firms scaled back the pace of hiring," HSBC chief economist for India and ASEAN Leif Eskesen said.
Output in the Indian service sector increased, and service providers remain optimistic about the short-term business outlook, it said.
Earlier, an HSBC survey had shown that India's manufacturing sector improved in October, driven by new orders, but persistent power shortages weighed on production.
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