India’s services sector continued to show resilience in November, with activity rising to 59.8 from 58.9 in October, according to a private-sector survey released on December 3.
The uptick comes after two consecutive months of moderation, though the HSBC Services Purchasing Managers’ Index (PMI) remains below 60 for the second straight month.
Between June and September, the index averaged a strong 61.3, underscoring easing of momentum heading into the second half of the fiscal.
The services performance is in sharp contrast to manufacturing, where activity slipped to a nine-month low of 56.6 in November amid softer domestic demand and the spillover effects of US tariffs announced earlier this year.
The divergence between the two sectors signals a gradual rebalancing of economic drivers, with services continuing to support overall activity even as factory output loses steam.
India’s broader macro indicators point to a similar pattern.
After a stellar first half in which GDP grew 8 percent — well above expectations — the second half is likely to be more subdued.
Industrial output data released on December 1 showed the Index of Industrial Production (IIP) rose just 0.4 percent in October, its slowest pace in 14 months.
The focus now shifts to the Reserve Bank of India’s policy meeting, with economists divided on whether the Monetary Policy Committee will cut rates by another 25 basis points. While softening manufacturing and weak IIP print strengthen the case for further easing, policymakers must weigh these against a strong second quarter in which GDP expanded 8.2 percent, the fastest in six quarters.
The RBI will share the policy decision on December 5.
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