Posting 51.5 in January, the seasonally adjusted India Services Business Activity Index indicated a further increase in output. However, falling from 55.5 in December, the headline figure pointed to the slowest rate of expansion in the current six-month sequence of growth. The upturn was reportedly stymied by the intensification of the pandemic, the reintroduction of restrictions and inflationary pressures. The Composite PMI Output Index fell from 56.4 in December to 53.0 in January, signalling the slowest rate of expansion in the current six-month period of growth. Both services activity and manufacturing production increased at weaker rates. January data highlighted further increases in new business and output among service providers, but growth was curbed by the escalation of the pandemic.
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