The HSBC India Services Business Activity Index, which tracks changes in activity at service companies, fell to 49.6 in May, from 52.4 in April since output prices in the private sector rose further, with the rate of inflation strongest in 13 months. The index went below the crucial 50 mark, which separates growth from contraction, for the first time in 13 months.Competitive pressure and natural disasters also led to the decrease in new business inflows, which declined for the first time since April 2014, HSBC said.
Meanwhile, the seasonally-adjusted HSBC India Composite PMI Output Index -- which maps both manufacturing and services sectors -- fell to a 7-month low of 51.2 in May, from 52.5 in April.
HSBC, however, noted that the prospects for the private sector output may perk up, going forward.
Service providers' optimism was maintained in May as improved marketing strategies and better economic conditions are expected to lead to better business activity over the next one year.
Undeterred by weaker demand, Indian services companies hired additional workers in May. However, the job creation was only fractional as the vast majority of survey participants signalled unchanged levels of staffing.
Meanwhile, the seasonally-adjusted HSBC India Composite PMI Output Index -- which maps both manufacturing and services sectors -- fell to a 7-month low of 51.2 in May, from 52.5 in April.
HSBC, however, noted that the prospects for the private sector output may perk up, going forward.
Service providers' optimism was maintained in May as improved marketing strategies and better economic conditions are expected to lead to better business activity over the next one year.
Undeterred by weaker demand, Indian services companies hired additional workers in May. However, the job creation was only fractional as the vast majority of survey participants signalled unchanged levels of staffing.
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