Service sector shrinks for second straight month, PMI falls to 49.2 in Oct

India’s service sector, the dominating area of economy, shrank for the second straight month in October due to subdued demand conditions, particularly in finance and real estate companies, showed widely tracked purchasing managers’ index (PMI). 

PMI fell to 49.2 in October from 48.7 in September. In PMI parlance, the reading below 50 denotes contraction and the one above 50 means expansion. This was the first back-to-back reduction since the second quarter of 2017-18. 

The data showed that the rate of deceleration also declined in October from September, providing a ray of hope in these times of slowdown. 

An earlier data showed that manufacturing