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Monday, January 18, 2021

‘Services PMI slows down in Dec’

The PMI data released by IHS Markit showed that the Indian services sector continued to recover from the coronavirus-induced contractions seen through most of 2020, with output and new business rising for the third straight month in December.

Written by ENS Economic Bureau | Mumbai | Updated: January 7, 2021 5:39:58 am
services sector, services sector activity, services sector slowdown, Purchasing Managers Index, Purchasing Managers Index drop, indian express newsStaff hiring came to a halt due to liquidity concerns, labour shortages and subdued demand, while business optimism faded. (Representational)

The services sector activity slowed down to its lowest level in three months in December with the Purchasing Managers’ Index (PMI) for the sector dropping to 52.3 in December from 53.7 in November.

The PMI data released by IHS Markit showed that the Indian services sector continued to recover from the coronavirus-induced contractions seen through most of 2020, with output and new business rising for the third straight month in December.

However, in both cases the rates of growth softened to the weakest over this period. Staff hiring came to a halt due to liquidity concerns, labour shortages and subdued demand, while business optimism faded.

Price data showed a pick-up in input cost inflation, the strongest since February, but a renewed fall in selling prices as some firms sought to beat competition and secure new work, IHS Markit said.

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