Services sector contracts for 4th month

An index value of below 50 indicates contraction. Business activity fell in five of the six categories monitored by the survey,with

the sharpest decline noted at hotels and restaurants,HSBC said.

The continued contraction in service sector activity is testament to the dampening effects of the heightened macroeconomic uncertainty,which is making businesses and consumers more cautious about spending, HSBC chief economist for India and ASEAN Leif Eskesen said.

The countrys economic growth slowed to 5 per cent during the last financial year that ended on March 31,from an average of 8 per cent over the past decade.

Earlier this week the HSBC/Markit manufacturing PMI showed that Indias manufacturing sector activity contracted for the third straight month in October and stood at 49.6,unchanged since September,indicating a third,albeit marginal,successive deterioration of business conditions.