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India’s services activity in November grew at the slowest pace in a year as high inflation expectations dampened business sentiment.

The S&P Global India services purchasing managers’ index, which helps investors assess business conditions and economic backdrop, declined to 56.9 last month from 58.4 in October.

Despite the slowdown, “we continue to see robust demand for services,” Pollyanna De Lima, economics associate director with S&P Global Market Intelligence, said in a statement, adding that the current expansion rates remain healthy. 

India’s services sector, which makes up more than half of the nation’s gross domestic product, is facing risks from weak global demand and elevated interest rates. The slowing pace of expansion partially offset the robust activity in its manufacturing sector, pulling down the composite index to 57.4 last month — the lowest since November 2022

The survey showed a “widespread slowdown” in rates of growth for new orders and output across the four broad areas of the service economy. Overseas demand for Indian services improved, but the rate of increase in new export orders was the slowest since June, S&P Global said. 

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