India’s Services PMI touched a 7-month low to reach 51 in April 2019, as compared to 52 in March. The decline signified slower increase in new businesses and growth in output. The decline has been attributed to intense competition and disruptions caused by election season.
Growth was also impacted by a shift towards online bookings by customers. On the positive side, overseas demand was strong, leading to the fastest growth in new export business over 10 months.
The services activity index is calculated from a survey of purchasing executives and over 400 services providers across consumer services, transport and storage, information and communication, financial and insurance and real estate and business services.
Another survey last week revealed that manufacturing activity was at an eight-month low due to decline in new orders, with the reading at 51.7 in April compared to 52.7 in March 2019.
The finance ministry had also stated that the Indian economy has slowed down in 2018-19, with a growth estimate of 7% during the year. India is also showing signs of a slowdown in consumption across sectors like auto and housing. Even the fourth quarter results of FMCG companies are showing a sharp deceleration in growth to single digits.
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