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5
December 2017
 |
GST (The Total Investment
& Insurance Solutions)
Rising
cost pressure, along with the after effects of the Goods and Services Tax
(GST), dragged the output of Indian service sector lower during November, a key
macro-economic data showed on Tuesday.
According
to the seasonally adjusted Nikkei India Services PMI Business Activity Index,
the service sector's output dipped into contraction territory during November
following a growth in the previous two months.
"Panellists
widely blamed the deterioration in business performance to GST. Meanwhile, cost
pressures intensified during the latest survey period," the PMI report
said. The Total Investment & Insurance Solutions
Subsequently,
the seasonally adjusted index registered an overall decline below the no-change
mark of 50 in November 2017. An index reading of above 50 indicates an overall
increase in economic activity and below 50 an overall decrease. The
Total Investment & Insurance Solutions
The
impact of lower Services PMI further subdued the overall private sector's
output during November.
Consequently,
the seasonally adjusted Nikkei India Composite PMI Output Index fell sharply from
50.3 in June to 51.3 in November.
"Following
modest growth in the previous two months, hopes of a sustained recovery in
November waned as marked growth in the manufacturing sector was broadly offset
by a downturn in the service sector," said Aashna Dodhia, economist at IHS
Markit and author of the report.
"Business
under-performance emanated from July's GST which contributed to sluggish demand
and lower customer turnout, according to anecdotal evidence."The Total Investment & Insurance Solutions
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