Ser­vices Ac­tiv­ity Dips for 3rd Month in Jan

Firms strug­gled with less cash post de­mon­eti­sa­tion

The Economic Times - - Economy: Macro, Micro & More - Our Bureau

New Delhi: In­dia’s ser­vices ac­tiv­ity con­tracted for the third suc­ces­sive month in Jan­uary as firms strug­gled with less cash in cir­cu­la­tion but the pace of con­trac­tion slowed, a pri­vate sur­vey showed on Fri­day.

The Nikkei In­dia Ser­vices Busi­ness Ac­tiv­ity In­dex was 48.7 in Jan­uary, up from 46.8 in the pre­vi­ous month. A read­ing above 50 in­di­cates ex­pan­sion and a fig­ure be­low that in­di­cates con­trac­tion.

“In­dia’s piv­otal ser­vice sec­tor re­mained in con­trac­tion ter­ri­tory in the open­ing month of 2017, with both new busi­ness and ac­tiv­ity fall­ing for the third straight month,” said Pollyanna De Lima, econ­o­mist at IHS Markit and au­thor of the re­port. A sur­vey by the same firm on Wed­nes­day showed slight im­prove­ment in the health of In­dia’s man­u­factu-

FALL IN AC­TIV­ITY

ring as man­u­fac­tur­ing PMI was up to 50.4 dur­ing the month from 49.6 in De­cem­ber 2016, sug­gest­ing mod­est ex­pan­sion. Nikkei In­dia Com­pos­ite PMI Out­put In­dex rose to 49.4 in Jan­uary from the 38-month low of 47.6 in the pre­vi­ous month.

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