TOKYO-India's service sector activity slipped to a seven-month low in April, as businesses waited for the outcome of general elections taking place this spring, a survey showed Monday.
The Nikkei India services Purchasing Managers' index, or PMI, dropped to 51.0 in April from 52.0 in March. The reading came in below the average for 2018, which was 51.6, and underscored that the sector is losing momentum.
Readings above 50 points indicate expansion, while those below 50 signal contraction.
"Although the Indian private sector economy looks to be settling into a weaker growth phase, much of the slowdown was linked to disruptions arising from the elections," said Pollyanna De Lima, economist at IHS Markit, which compiles the survey. Companies "generally foresee improvements once a government is formed."
"Another key takeaway from the latest results is the lack of inflationary pressures in both the manufacturing and service sectors, which coupled with slower economy growth offers room for a further cut to the benchmark repurchase rate," she added.
For more information, visit IHS Markit website.