Services sector growth slips to 12-mth low in May

New Delhi: The country’s services sector activity increased at the slowest pace in a year in May, as disruptions arising from the elections in the earlier part of the month hampered growth of new work intakes, a monthly survey showed on Wednesday. The Nikkei India Services Business Activity Index fell to 50.2 in May, from 51.0 in April, pointing to the slowest growth rate in the current 12-month stretch of expansion. Despite the moderation, the services PMI was in the expansion territory for the 12th straight month. “India’s dominant service economy again suffered the impacts of election disruptions, with growth of both new work and business activity softening for the third straight month,” said Pollyanna De Lima, principal economist at IHS Markit, and author of the report. The survey, however, noted that there were signs that the slowdown may prove temporary as companies stepped up hiring and became more confident about future prospects. PTI