India's Services Sector Growth Hits 2-Year Low
India's services sector growth slowed in January as domestic demand weakened, but hiring remained strong.
BUSINESS: India's services sector growth slowed to a 25-month low in January, with the Purchasing Managers' Index (PMI) falling to 56.5 from 59.3 in December. This decline reflects a softening of domestic demand, although international demand remained a bright spot. Despite the slower growth, hiring activity in the sector continued to be robust.
Experts suggest that rising inflation and cautious consumer spending played a role in dampening domestic demand. However, the sector continues to benefit from steady global demand, particularly in IT, finance, and outsourcing services. Analysts expect recovery in the coming months, driven by policy support and seasonal factors.
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