Economics
PMI Plunge Adds to Evidence India Cash Ban Is Hurting Growth
- Services to contract for second month; composite plummets
- Government to announce FY17 growth estimate on Friday
Indians Said to Deposit 97% of Banned Rupees
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India’s dominant services sector is set to contract for a second straight month, adding to evidence that Prime Minister Narendra Modi’s surprise ban on cash will trigger a sharp slowdown in Asia’s No. 3 economy.
The Nikkei India Services Purchasing Managers’ Index was at 46.8 in December, a report showed on Wednesday, little changed from 46.7 a month earlier. A number below 50 indicates a contraction. The data follows a similar survey Monday, which showed the manufacturing sector will shrink for the first time in a year, dragging down the composite PMI to 47.6, the lowest since at least 2013.