NEW DELHI: India’s dominant services sector experienced a slower expansion in October — amid competitive conditions and price pressures — marking its slowest pace in seven months, according to a survey on Friday.
This slight tapering in demand resulted in a sluggish rate of job creation. However, underlying activity remained robust, and exports continued to grow.
The data, when combined with a cooling manufacturing sector, may present a challenge to India’s economic growth outlook.
Pollyanna De Lima, Economics Associate Director at S&P Global, noted that “the Indian service economy continued to register impressive growth, despite the increases in business activity and new work intakes softening from September’s over 13-year highs.”
“Several firms managed to secure new contracts, but some mentioned subdued demand for their services and competitive conditions. The sector’s strength in October came from exports, driven by new business gains from Asia, Europe, and the US,” she said.