Services sector growth in single-digit after 14 quarters

After recording double-digit growth for 14 consecutive quarters, the country's services sector growth decelerated to 9.6 per cent during Q2 FY09.

This reduced its relative contribution to the real GDP growth, the Reserve Bank of India said today.

"The deceleration in growth was mainly on account of lower growth recorded by financing, insurance, real estate and business services and construction," the apex bank said.

Most of the lead indicators of services sector activity for April-October 2008-09 indicate a sharp deceleration in growth.

"However, revenue earning railway freight traffic witnessed acceleration during April-November 2008-09," it said.