US Markit services PMI falls to 53.3 in January from 53.7
Feb 06 2018
The Caixin China General Manufacturing Purchasing Managers' Index (PMI) came in at 51.5 last month, unchanged from that in last December, which was the highest reading since August.
The index remained above the 50 threshold that separates expansion from contraction for the 16th consecutive month.
Aashna Dodhia, an economist at HIS Markit and the author of the report quoted that this recovery in the service sector of India continued during January with growth picking up at a fast pace from June 2017 since the underlying demands got better.
Weaker-than-expected services sector data for January also weighed on markets.
The private survey's results accord with the official observation of the service sector, which also increased in January. In November, the index had stood at 48.5.
The poor reading from the service sector follows equally disappointing results at the end of last week from the manufacturing and construction indices and suggests overall that the United Kingdom economy entered 2018 on a weak footing.
Recent strong economic data boosted hopes that the Bank of England (BoE) would be pressured into raising interest rates again in the near-term, but this month's trio of below-forecast PMIs has derailed upbeat hopes for the United Kingdom economy and softened the chances of interest rate hikes this year. But, the GST was a key constraint to businesses and with respect to its manufacturing counterpart, the service sector remained a struggle.
January's upturn was mainly due to greater client demand, with new business growing at its quickest pace in 32 months, according to Caixin.
Last month's readings suggest the economy is running at a quarterly growth rate of just under 0.3 percent.
There has been an upsurge in the Indian service sector with it expanding in January.
Despite the slowdown, business confidence is at its strongest since last March, with firms still optimistic that business activity will be higher over the course of 2018. "With the survey also indicating weaker upward price pressures, the data therefore cast doubts on any imminent rise in interest rates".