Downturn in services sector eases in Nov

Written by Reuters | Bangalore | Updated: Dec 5 2013, 10:52am hrs
The downturn in Indian services activity eased slightly in November although a dearth of new orders prompted firms to rein in hiring plans, a business survey showed on Wednesday.

The HSBC Services Purchasing Managers' Index (PMI) , compiled by Markit, nudged up to 47.2 last month from 47.1 in October.

The improvement, coupled with the positive findings of Monday's survey on Indian manufacturing, augurs well for Asia's third-largest economy, which grew at a higher-than-expected 4.8 percent annual rate in the three months through September.

"Service sector activity remains subdued, but would at least appear to be stabilising," said Leif Eskesen, chief economist for India at survey sponsor HSBC.