India’s service sector in November
According to data provided by Markit Economics, India’s service PMI (purchasing managers’ index) fell in November 2017. It stood at 48.5 in November, compared with 51.7 in October 2017, and missed the market estimate of 51.5.
The weaker service PMI in November was due to the following:
- production output showed no improvement
- new business and export orders fell
- employment in the service sector weakened
In July 2017, the service PMI fell for the first time since January 2017. November’s fall marked the second reduction in service activity. A level below 50 indicates contraction in economic activity and a level above 50 indicates expansion in economic activity.
The Indian (INDA) government’s implementation of a goods and services tax on July 1, 2017, created confusion rose among consumers and businesses about the tax rate. It has affected business sentiment and new business orders for the past five months.
The iShares MSCI India ETF (INDA) remained weaker in November while major developed nation (EFA) ETFs such as the SPDR S&P 500 ETF (SPY) and the PowerShares QQQ ETF (QQQ) performed strongly. In the next part of this series, we’ll analyze China’s manufacturing PMI in November 2017.