June 3, 2016 12:39 PM

printer

Services sector growth eases for 2nd straight month in May

Services sector growth in the country contracted for the second straight month in May and also registered the weakest rise since last November. The Nikkei Services Business Activity index, which maps the services sector activity, fell from 53.7 in April to 51.0 in May.Meanwhile, the Nikkei India Composite PMI Output Index, which maps both manufacturing and services sectors, fell to a six-month low of 50.9 in May, from 52.8 in April. Manufacturing production growth eased in May, which combined with the slowdown in services resulted in a weaker increase in private sector output, the survey said.This could raise the chances of further cuts in interest rates by the RBI, to be supported by subdued inflationary pressures. Earlier in April, the RBI cut its policy rate by 0.25 per cent to 6.5 per cent. While this was the first rate cut after a gap of six months, the RBI has lowered its rate by 1.5 per cent cumulatively since January 2015.Meanwhile, the Indian economy grew at 7.9 per cent in the fourth quarter of 2015-16 taking the overall GDP growth to a five-year high of 7.6 per cent in the fiscal.

Most Read
View All arrow-right

No posts found.