India services PMI falls to 13-month low in November, economy hit: HSBC
Services make up nearly 60 percent of India's economic output and any sign of deceleration darkens the outlook for Asia's third-largest economy, as the sector has been the lone bright spot for most of this year.
The HSBC services Purchasing Managers' Index (PMI), based on a survey of around 400 companies, fell to 52.1 in November from October's 53.8, to register a 13-month low.
The 50 level separates growth from contraction compared to the previous month, and while the November reading marked a second straight month-on-month drop, the index has held above 50 for a year now.
"Business activity expanded at a slower pace in November and new business also grew at a slower clip, which in both cases may partly reflect the fewer working days due to the Diwali," said Leif Eskesen, economist at HSBC.
The vast majority of India's over 1.2 billion people celebrated the festival of Diwali last month which meant many services firms remained shut for a few days.
While there is strong overseas demand for Indian services, a looming budget crisis in the United States, if not averted, could put the brakes on exports and slow new outsourced deals for Indian software companies.
Still, firms were more optimistic about the future. The business expectations sub-index jumped almost four
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