Services PMI contracts to 47.8 in February 2018
The Nikkei India Services Business Activity Index contracted at 47.8 in February 2018 compared with 51.7 in January 2018. A reading above 50 implies an expansion while one below 50 denotes a contraction.
The contraction shows that activity and new work in services sector declined for the first time since November 2017, with rates of contraction the fastest since August 2017.
The fall in the services index outweighed the upturn seen in manufacturing PMI in February 2018. Business activity in services sector contracted in February 2018 due primarily to a decline in new orders. Both activity and new work in the services sector has declined for the first time since November 2017, with rates of contraction the strongest since August 2017.
PMI is an indicator of business activity-both in the manufacturing and services sectors. It is published by Markit Limited. It is a survey-based measure that asks respondents about changes in their perception of some key business variables from month before. It is calculated separately for manufacturing and services sectors and then composite index is constructed. The index figure above 50 denotes expansion in business activity and anything below 50 denotes contraction.