<p>Services sector output stagnated in November after four consecutive months of expansion, as business sentiments hit the lowest level in a decade and flow of new orders turned sluggish, a monthly survey showed today.<br /><br /></p>.<p>The Purchasing Managers' Index for services sector fell to 50.1 in November, from an eight-month high of 53.2 in October, showing broadly unchanged levels of services sector activity across the country, as per the business survey conducted by Markit and Nikkei.<br /><br />A reading of 50 divides growth and contraction.<br /><br />The gloomy trend was also observed in the labour market, as employment rose at a pace that was historically muted.<br /><br />"Service sector output in India broadly stagnated and confidence waned in November, following four consecutive months of increases," the PMI survey said.<br /><br />"Services companies in India displayed a lack of optimism with regards to the 12-month outlook for activity, as sentiment dropped to the lowest in the ten-year survey history," it said.<br /><br />On the prices front, output prices in services sector however stabilised in November.<br /><br />The survey members blamed fierce competition and frail economic conditions for the slowdown in growth of new work.<br /><br />The latest data comes within days of the manufacturing sector PMI survey on Tuesday showing that the country's factory output grew at the slowest pace in 25 months.<br /><br />However, the latest government data has showed that India's economy grew by 7.4 per cent in July-September quarter, outpacing China to become the fastest growing major economy.<br /><br />The Reserve Bank has left its policy rates unchanged, as was widely speculated, and promised more easing when permitted within its key task of keeping inflation under check. <br /><br /></p>
<p>Services sector output stagnated in November after four consecutive months of expansion, as business sentiments hit the lowest level in a decade and flow of new orders turned sluggish, a monthly survey showed today.<br /><br /></p>.<p>The Purchasing Managers' Index for services sector fell to 50.1 in November, from an eight-month high of 53.2 in October, showing broadly unchanged levels of services sector activity across the country, as per the business survey conducted by Markit and Nikkei.<br /><br />A reading of 50 divides growth and contraction.<br /><br />The gloomy trend was also observed in the labour market, as employment rose at a pace that was historically muted.<br /><br />"Service sector output in India broadly stagnated and confidence waned in November, following four consecutive months of increases," the PMI survey said.<br /><br />"Services companies in India displayed a lack of optimism with regards to the 12-month outlook for activity, as sentiment dropped to the lowest in the ten-year survey history," it said.<br /><br />On the prices front, output prices in services sector however stabilised in November.<br /><br />The survey members blamed fierce competition and frail economic conditions for the slowdown in growth of new work.<br /><br />The latest data comes within days of the manufacturing sector PMI survey on Tuesday showing that the country's factory output grew at the slowest pace in 25 months.<br /><br />However, the latest government data has showed that India's economy grew by 7.4 per cent in July-September quarter, outpacing China to become the fastest growing major economy.<br /><br />The Reserve Bank has left its policy rates unchanged, as was widely speculated, and promised more easing when permitted within its key task of keeping inflation under check. <br /><br /></p>