Indian services activity shrank in August at its quickest pace since the depths of the global financial crisis as new business dried up, a survey showed, the latest evidence that Asia’s third-largest economy is rapidly losing steam even as policymakers battle a full-blown currency crisis.
Taken together with a survey of Indian factories published on Monday that showed activity shrank for the first time since early 2009, the data will stoke worries that growth in the July-September quarter could be even weaker than in April-June.
The HSBC Services Purchasing Managers’ Index (PMI) compiled by Markit, slipped to 47.6 in August, the weakest since April 2009, from 47.9 in July.
A number below 50 denotes contraction.
“The numbers we have seen so far for July and August for both the manufacturing and service sectors point to a further slowdown in GDP growth during the third quarter,” said Leif Eskesen, chief economist for India at survey sponsor HSBC.
The economy grew 4.4 percent in April-June, its slowest quarterly growth rate since early 2009, as mining and manufacturing contracted, data showed on Friday.
India’s economic growth has almost halved in the past two years.
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