Service Sector Growth Slips

The Nikkei India Services Business Activity Index was placed at 50.3 in June, its second lowest reading over the past 12 months that have seen readings of above 50. The headline index was down from 51 in May , pointing to a slower pace of expansion that was marginal.
A reading above 50 on this survey-based index indicates economic expansion while a figure below that indicates contraction.
Growth in new business slackened to its slowest pace in 11 months.
Data released last week showed that India's manufacturing activity was at a three month high, with manufacturing PMI edging up to 51.7 in June from 50.7 in May.
Overall, the Nikkei India Composite PMI Output Index, which combines services and manufacturing, went up to 51.1 in June from 50.9 in May, but was below its long term average and pointed to a slower pace of expansion. Indian service providers signalled an increase in staffing levels during June even though factory employment was broadly unchanged for the month.
Prices charged by Indian service providers continued to increase in the latest survey period. Factory gate charges were broadly unchanged, though, providing room to the RBI governor to cut rates, before his term ends in September.

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