Econintersect: Yesterday we reported a strong rebound for India’s manufacturing 
sector in November with the PMI (Purchasing Managers’ Index) recording a reading of 51.3, well above the 50 mark which defines the boundary between contraction and expansion.
Tonight the report for the service sector is not so good, still mired well below 50 with a November reading of 47.2, little changed from 47.1 in October. The combined Composite Output Index came in at 48.5, significantly better than October’s 47.2
Commenting on the India Services PMITM survey, Leif Eskesen, Chief Economist for India & ASEAN at HSBC said:
“Service sector activity remains subdued, but would at least appear to be stabilizing. The inflation picture is a bit mixed, with prices charged rising at a faster pace while input price inflation eased somewhat. Looking ahead, economic activity is expected to remain soft in coming months as high inflation, tighter financial conditions, and structural constraints continue to weigh on growth.”
Respondents to the November survey indicated they were anticipating improved business condition as the new year starts.
Sources:
- Private sector output drops for fifth successive month, but at weaker pace (HSBC Purchasing Managers’ Index™ Press Release, Markit, 04 December 2013)
- India’s services PMI inches up to 47.2 in Nov: HSBC (Business Line, The Hindu, 04 December 2013)
