Services growth sinks to one-year low in May, dented by elections: PMI

Activity in India’s dominant services sector grew at its slowest pace in a year in May, hurt by weak domestic demand, a private survey showed on Wednesday, while a sharp easing in price pressures virtually cemented the case for another rate cut this week. The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 50.

2 in May, its lowest since May 2018 and only a touch above the 50-mark that separates contraction from growth. That will make disappointing reading for policymakers, after data last week showed India’s.

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