A Tem­po­rary Blip

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

The sharp drop in Ser­vices PMI seems tran­si­tory, in the run-up to the new in­di­rect tax regime—GST. It is en­tirely pos­si­ble that busi­nesses and cor­po­rates may have de­cided to post­pone con­sump­tion, seek­ing more clar­ity on GST rates and at­ten­dant norms for in­put tax credit. And the rather smooth tran­si­tion to GST should boost eco­nomic ac­tiv­ity go­ing for­ward. In tan­dem, we also need a reg­u­lar in­dex of ser­vices out­put, to keep bet­ter tab on seg­mented data.

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