Tokyo: The output growth of India’s service sector softened to a six month low in March with slower expansion in new work, Nikkei Asian Review said on Thursday.
The Nikkei India services Purchasing Managers’ Index (PMI) decreased to 52 in March from 52.5 in February. Readings above 50 points indicate expansion while those below 50 signal contraction.
“The setback in the service sector was partly caused by waning new business growth,” said Pollyanna De Lima, Principal Economist at IHS Markit which compiles the survey.
The pace of staff hiring recorded the weakest since last September.
“An anemic pace of job creation hints that service providers are not fully convinced about a shift into a higher growth gear,” she added.
Digging deeper into the anecdotal evidence provided by surveyed firms, there are concerns about delayed payment from clients and a challenging economic situation.
The slowdown in service sector growth was matched by cooling manufacturing industry.
Following strong readings previously in this quarter, the disappointing figures for March meant that the quarterly figure for the combined Composite Output Index at the end of FY 2018 was down from Q3.