Services Activity Dips for 3rd Month in Jan
Firms struggled with less cash post demonetisation
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.