HSBC survey says India's services sector growth slowed down in June - Business Today

Home /SECTORS /Info Tech /Story BT Online Bureau    New Delhi   Last Updated: July 3, 2013  | 12:56 IST India's services sector activity slowed down in June owing to a decline in new business orders and subdued economic conditions. The sector accounts for around 60 per cent of the India's GDP. The HSBC/Markit purchasing managers index (PMI) for the services industry, which was released on Wednesday, fell from May's three-month high 53.6 to 51.7 in June. A reading above 50 shows that the sector is expanding, while that below 50 shows that the output in the sector is contracting. "Service sector activity grew at a slower clip as new business flows moderated, which made businesses less optimistic about the year ahead," HSBC Chief Economist for India and ASEAN Leif Eskesen said. The pace of growth in new orders placed at private sector firms in India during the month was the weakest in the last 50 month period. Moreover, subdued economic conditions was also a major factor behind the deceleration in output growth, HSBC said. "The slower pace of growth in the services sector is reflected in service providers' subdued optimism towards output growth in the next 12 months," the survey said. On price rise, the report said faster rates of inflation were signalled in the Indian private sector during June as input prices rose solidly, amid higher raw material, labour and fuel costs. "Notwithstanding the slowdown, inflation readings firmed (up) on the back of higher labour and raw material prices, with the depreciation of the Rupee also cited as a factor," Eskesen said. The rupee last week sank to an all-time low of 60.76 against dollar on heavy capital outflows and month-end dollar demand from importers. Earlier this week, the HSBC/Markit manufacturing PMI showed that the manufacturing sector output remained broadly flat in June as new orders declined for the first time in over four years. Accordingly, the HSBC India Composite Output Index, which maps both services and manufacturing activity, fell from 52.0 in May to 50.9 in June. With inputs from PTI Murthy seeks better infra for IT sector Immigration bill to impact Indian, US cos: TCS US tech firms' CEOs hail immigration bill Oil prices near $102 on Egypt crisis Hind Copper offer begins, shares fall Rupee tanks below 60-mark, down 37 paise via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEIf08YAyag3NZRdo9LOur8spK94A&url=http://businesstoday.intoday.in/story/hsbc-survey-says-services-sector-growth-slowed-down-in-june/1/196420.html

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