Service sector growth at three-month low in Dec due to Covid: PMI survey

PMI fell to 52.3 in December from 53.7 in November; Companies fire workers due to liquidity problem among other factors

Recovery in the services sector, which dominates the Indian economy, continued to lose momentum in December and fell to a three-month low, owing to competitive pressures and the impact of Covid-19 on demand, showed a widely tracked IHS Markit Purchasing Managers’ Index (PMI) survey. Employment contracted after rising in November for first time in nine months as companies dealt with liquidity concerns and subdued demand.

Services PMI fell to 52.3 in December from 53.7 in November. The December reading was the lowest since the services sector started growing in October. A PMI reading above 50 indicates growth and a print below