Commenting on the India Services PMI survey, Frederic Neumann, Co-Head of Asian Economics Research at HSBC said:
“India's service sector picked up steam in October, with firms continuing to add jobs. The details, however, suggest that services might cool in the coming months, with new business growth decelerating slightly and backlogs contracting. The RBI may take comfort in the fact that both output and input price pressures are easing, although this is not sufficient to raise a definitive green flag on inflation.”
• Expansion of new business in the service sector continued to slow.
Contribution of Service Sector to GDP is huge and it might act as drag on 8% growth rate
• Overall employment rose, after remaining unchanged in September.
• Falling charges in services offset an increase in manufacturers’ output prices.
Increase in manufactured product prices will add the already high inflation