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Services sector takes a hit in May; contracts because of weak demand: PMI

The survey also showed firms were turning more cautious about hiring, with the pace of job creation easing to the weakest so far this year


Activity in India's service industry shrank in May for the first time in three months as new orders stagnated, but business optimism was the highest since 2015 on expectations that demand will turn around, a business survey showed. The Nikkei/IHS Markit Services Purchasing Managers' Index fell to 49.6 in May from April's 51.4, sinking below the 50-mark that separates growth from contraction. While data last week showed Asia's third-largest economy grew at its quickest pace in nearly two years, the latest PMI survey suggested it may have trouble maintaining that ...

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First Published: Tue, June 05 2018. 11:20 IST