After registering a 12-month high in January,the countrys services sector witnessed continued,albeit slower pace of expansion in February amid a decline in new business orders,an HSBC survey said on Tuesday.
The growth in the services sector,which makes up for nearly 60 per cent of the countrys economic output,stood at 54.2 in February (down significantly from 57.5 in January),indicating a continued,albeit slower,expansion of service sector activity in India.
The robust pace of growth in the services sector witnessed in January could not be sustained in the month of February as there was a decline in new business orders.
Activity in the services sector grew at a slower clip led by a deceleration in new business,but backlogs of work still increased, HSBC chief economist (India and ASEAN) Leif Eskesen said.
Growth in service sector activity has now been sustained for 16 successive months and service providers are optimistic about the 12-month outlook for the sector.
Around 42 per cent of survey respondents anticipate activity levels to be higher in the upcoming year,compared with only 3 per cent that expect a reduction.