Indian services activity expanded at its weakest rate in three months in August as firms’ order books filled up at a slower pace, a business survey showed on Wednesday.
The new business sub-index fell to 51.9 from 52.6, a three-month low.
Service firms were not alone in reporting lower order volumes. Factory surveys on Monday showed new orders slowed for companies across Asia and Europe as tensions between Russia and Ukraine escalated and a patchy recovery in China.
India’s services activity expanded for the first time in May after shrinking for 10 months, right around the time Prime Minister Narendra Modi’s Bharatiya Janata Party scored a landslide election victory that drove a wave of optimism.
But Modi is yet to launch sweeping reforms aimed at pushing the economy back to the double-digit growth rates of late 2009-early 2010.
“Services activity is once again turning down following a swift post-election uptick, suggesting that an improvement in reform momentum is needed to lift sentiment in the sector,” said Frederic Neumann, co-head of Asian economic research at HSBC.