‘Services growth in Jan. fastest in three months’

‘Services growth in Jan. fastest in three months’

Context:

According to a survey, The Indian services sector remained in expansion mode in January, registering the fastest rise in activity in three months driven by a renewed increase in new business orders.

Highlights of the Report:

• The Indian service sector continued to expand in January
• Also, the rate of job creation was the fastest since last September.
• The seasonally-adjusted Nikkei Services Business Activity Index rose to 51.7 in January from 50.9 in December
• The index remained above the neutral mark of 50 in January that separates growth from contraction for the second consecutive month.
• In November, the index stood at 48.5.
• Though growth rates for activity and employment accelerated since December, it remained weaker than their respective long-run survey averages.
• The service sector lagged behind when compared to manufacturing
• The main constraint to business was the Goods and Services Tax (GST)