EDITION: US | UK | Canada
Thecapitalpost.com - Breaking, International, Business, Sports, Entertainment, Technology and Video NewsThecapitalpost.com - Breaking, International, Business, Sports, Entertainment, Technology and Video News
Sign In|Sign Up
 
 
Bridging The Gap
India's services industry contracts in Feb as inflation hits demand: PMI.
  Monday 05 March, 2018
India\'s services industry contracts in Feb as inflation hits demand: PMI.

The seasonally adjusted Nikkei India Services Business Activity Index fell from 51.7 in January to 47.8 in February, its lowest level since August.
Activity in India’s service industries contracted in February for the first time since November as rising price pressures led to a decline in new businesses orders, a private survey showed on Monday.
The seasonally adjusted Nikkei India Services Business Activity Index fell from 51.7 in January to 47.8 in February, its lowest level since August.
Services activity suffered for most of last year following a ban of high value currency notes in November 2016.

The July 1 implementation of a national sales tax 1 was another setback, weakening demand.
“Both activity and new work declined for the first time since November, with rates of contraction the strongest since August, thereby ending the recent recovery experienced by India’s service sector,” said Aashna Dodhia, an economist at IHS Markit.
“Anecdotal evidence pointed to weak underlying demand conditions in the service economy.”
A sub-index tracking new business sank to a six-month low of 48.0 last month from 51.7 in January as demand continued to be affected by higher prices.
The survey said prices rose at their fastest pace in seven months after a sharper hike in input costs forced services firms to transfer some of the inflationary pressure to customers.

Despite declining slightly in January, fuel prices remained elevated. That and expectations of massive government spending over the coming year are likely to keep the inflation rate above the Reserve Bank of India’s medium-term target of 4 percent in the near future, increasing the chances of a hike in the central bank’s benchmark rate.
In February, manufacturers also faced accelerating inflation, pushing overall input prices to rise at their quickest pace in three and a half years.
The contraction in services activity offset an expansion in manufacturing and caused a composite PMI, which includes both, to plunge to 49.7, its lowest since August, from 52.5 in January.

“However, (services) firms seem to believe that the decline is transitory as they raised their staffing levels at the joint-fastest pace since June 2011, in line with positive projections of activity growth,” said Dodhia.
Asia’s third-largest economy grew at its sharpest annual rate in more than a year during the quarter to end-December, 7.2 percent, reclaiming its title of the world’s fastest growing major economy.aaa






source:http://www.business-standard.com/article/economy-policy/india-s-services-industry-contracts-in-feb-as-inflation-hits-demand-pmi-118030500230_1.html

Bookmark and Share
 
Post Your Comments:
Name :
*
City / State:
*
Email address:
*
Type your comments:
*
Enter Security Code:   


 Latest News »
 
  George W. Bush, choking back t...
  President George H.W. Bush hon...
  Trump says Bush led ‘exemplary...
  President Trump's lieutenants:...
  President Donald Trump abruptl...
  Brian Kemp declares victory in...
  Lawmakers promise scrutiny of ...
  ‘Maybe he did and maybe he did...
  Trump in California to view fi...
  Macron rebukes nationalism at ...
  In his home state, Donald Trum...
  Trump administration to reinst...
  Trump goes after Paul Ryan ove...
  Turkish president to Saudis on...
  Fact-checking Trump's Arizona ...
  Democrats want sanctuary for t...
  Nikki Haley, top Trump aide, w...
  Donald Trump, who accuses inte...
  President Donald Trump calls f...
  Donald Trump tells aides he li...
 

Current Conditions:
Partly Cloudy

Forecast:
Mon - Partly Cloudy. High: 41Low: 30
Tue - Sunny. High: 41Low: 28
Wed - Partly Cloudy. High: 41Low: 31
Thu - Mostly Cloudy. High: 40Low: 32
Fri - Scattered Showers. High: 51Low: 38

Full Forecast at Yahoo! Weather



Washington, DC

  ©2010 The Capital Post. All rights reserved.