India’s private sector expanded at the weakest pace in five months in November, as growth of manufacturing production eased sharply, while services activity broadly stagnated, survey figures from Nikkei and Markit Economics showed Thursday.
The seasonally adjusted Nikkei Composite Output Index fell to 50.2 in November from 52.6 in October. However, any reading above 50 indicates expansion in the sector.
The Services Business Activity Index dropped to 50.1 in November from 53.2 in the previous month.
New orders received by the Indian service sector increased at the slowest pace in four months in November. Manufacturing orders climbed for the twenty-fifth straight month, although at the weakest pace in this sequence.
Service sector employment grew marginally in November and remained below the ten-year survey average. Meanwhile, manufacturers reported broadly unchanged staffing levels.
On the price front, input costs for the services firms rose for the second successive month in November, led by higher prices of food and petrol. Input prices at manufacturers rose at the quickest pace in six months.
As a result of difficult economic conditions and weak demand, services companies displayed a lack of optimism with regards to the 12-month outlook for activity. The corresponding sentiment dropped to the lowest in the ten-year survey history.
The material has been provided by InstaForex Company – www.instaforex.com