India's services sector growth down in June: HSBC - Indian Express

PTI : New Delhi, Wed Jul 03 2013, 11:22 hrs The services sector, which accounts for around 60% of the India's GDP, witnessed moderation in June. (Reuters) India's services sector activity slowed down in June owing to a decline in new business orders and subdued economic conditions, an HSBC survey said. The HSBC/Markit purchasing managers index for the services industry, which was released today, fell from May's three-month high 53.6 to 51.7 in June. STOCK MARKET LINKS * BSE Sensex * NSE Nifty The services sector, which accounts for around 60 per cent of the India's GDP, witnessed moderation in June as 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, HSBC said. Moreover, subdued economic conditions was also a major factor behind the deceleration in output growth, HSBC said. 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 lessoptimistic about the year ahead," HSBC Chief Economist for India and ASEAN Leif Eskesen 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. 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. 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. ... contd. ALSO READ India's services sector growth down in June: HSBC Hind Copper share sale commences on bourses; shares fall 3% Reserve Bank of India puts on hold debt private placements rules for non-bank fin firms BSE Sensex down 211 points in early trade Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHz32XEoRyrz01s3DhjbpbjHCs9VA&url=http://www.indianexpress.com/news/indias-services-sector-growth-down-in-june-hsbc/1137066/

Put the internet to work for you. via Personal Recipe 2910127