Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

But the job is not done yet!
Vote for the deserving candidate this year.

Check your mail to know more

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
SPONSORED BY
LIVE TV DownloadNews18 App
News18 English
»
1-min read

GST Impact: Poor Demand Drops Service Sector's Purchase Index to 3-month Low in November

Despite unfavourable demand conditions, service providers continued to add to their workforce numbers as the level of business sentiment in the service sector for the next 12-months rose at the strongest pace since July.

PTI

Updated:December 5, 2017, 2:31 PM IST
facebookTwittergoogleskypewhatsapp
GST Impact: Poor Demand Drops Service Sector's Purchase Index to 3-month Low in November
In PMI lexicon, a print above 50 means expansion and a score below that denotes contraction. (Representative image/Reuters)
Loading...
New Delhi: Services sector activity in India slipped into contraction territory during November, post the implementation of the Goods and Service Tax (GST) that led to sluggish demand and lower customer turnout, says a monthly survey.

Posting below the no-change mark of 50.0 in November, the seasonally adjusted Business Activity Index signalled a contraction of the service sector for the first time in three months.

In Purchasing Managers' Indexes (PMI) lexicon, a print above 50 means expansion and a score below that denotes contraction.

"Business under performance emanated from July's Goods and Services Tax (GST) which contributed to sluggish demand and lower customer turnout, according to anecdotal evidence," said Aashna Dodhia Economist at IHS Markit and author of the report.

Despite unfavourable demand conditions, service providers continued to add to their workforce numbers as the level of business sentiment in the service sector for the next 12-months rose at the strongest pace since July.

The latest services PMI follows the manufacturing one announced December 1, which showed that robust growth in manufacturing sector during November.

Accordingly, the Nikkei Composite Output Index, that maps both the manufacturing and services activity fell from 51.3 in October to a three-month low of 50.3 in November, signalling a broad stagnation in private sector output in India.

On the prices front, input cost inflation quickened to the fastest since October 2013 and accordingly service providers increased their average selling prices in November.

"That said, cost pressures further intensified at service firms (fastest inflation since October 2013), which could constrain output growth in the near term and reduce any central bank appetite to reduce interest rates," Dodhia said.

India Inc, however, is demanding interest rate cut to further build on positive sentiment generated by the rebound and upgrade of the country's sovereign rating by Moody's.

In its October review, it had kept the benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal.

The central bank had reduced the benchmark lending rate by 0.25 percentage points to 6 per cent in August, bringing it to a 6-year low.
| Edited by: Sanchari Chatterjee
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
T&C Apply. ARN EU/04/19/13626
 
Most Active
Company Price Change %Gain
Reliance 1,385.95 3.14
PC Jeweller 145.15 -0.55
Interglobe Avi 1,554.40 -1.74
Tata Motors 236.25 2.49
Infosys 717.05 -0.97
Company Price Change %Gain
SpiceJet 136.25 2.68
PC Jeweller 145.20 -0.55
HDFC Bank 2,290.15 -0.63
Reliance 1,382.90 2.79
Jet Airways 163.90 -32.23
Top Gainers
Company Price Change %Gain
Reliance 1,385.95 3.14
JSW Steel 299.15 2.73
Tata Motors 236.25 2.49
BPCL 362.90 1.51
Wipro 284.80 1.39
Company Price Change %Gain
Reliance 1,382.90 2.79
Tata Motors 235.90 2.32
Asian Paints 1,465.35 0.65
TCS 2,145.50 0.61
Coal India 251.75 0.22
Top Losers
Company Price Change %Gain
Yes Bank 255.80 -4.00
Indiabulls Hsg 800.55 -3.83
Hindalco 207.20 -3.61
Vedanta 178.60 -3.43
Zee Entertain 402.30 -3.19
Company Price Change %Gain
Yes Bank 255.30 -4.18
Vedanta 178.70 -3.51
IndusInd Bank 1,764.00 -2.86
Tata Steel 542.85 -1.77
Larsen 1,360.75 -1.57

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results