The Nikkei Markit India Composite PMI (Purchasing Managers Index) shows a decline in November, to a contraction. The graph is like this: Above 50 is expansion, and below is contraction.
There are two parts of the PMI: Manufacturing, which fell marginally to 52.3 (from 54.4) and Services. The services PMI has dropped from 54.5 to 46.7, indicating massive contraction in the service sector:
Dropping from 54.5 to 46.7 in November, the seasonally adjusted headline Nikkei India Services Business Activity Index registered in contraction territory for the first time since June 2015 and pointed to the sharpest reduction in output for almost three years. Anecdotal evidence highlighted a lack of cash in the economy. Activity decreased in three of the six monitored sub-sectors, namely Financial Intermediation, Hotels & Restaurants and Renting & Business Activities.
This is probably a crazy month because of all the demonetization impact. Let’s see what December does.