OCT SERVICES SECTOR ACTIVITY CONTRACTS

BENGALURU: Activity in India’s dominant services industry contracted for a second consecutive month in October due to muted demand, a private business survey showed on Tuesday, driving business optimism to a near-three year low. Although the Nikkei/IHS Markit Services Purchasing Managers’ Index rose to 49.2 last month from 48.7 in September, it remained below the 50-mark threshold separating contraction from growth on a monthly basis. “It’s somewhat worrying to see the Indian service sector stuck in contraction, as firms react to muted demand by lowering business activity,” said Pollyanna de Lima, principal economist at IHS Markit.