Services PMI contracts for second straight month in October on muted demand

Anecdotal evidence highlighted subdued demand conditions, competitive pressures and a fragile economic situation

Activity in India's dominant services industry contracted for a second consecutive month in October due to muted demand, a private business survey showed on Tuesday, driving business optimism to a near-three year low.

Although the Nikkei/IHS Markit Services Purchasing Managers' Index rose to 49.2 last month from 48.7 in September, it remained below the 50-mark threshold separating contraction from growth on a monthly basis.

The last time services activity contracted for two consecutive months was in August 2017 following the hasty implementation of a Goods and Services Tax (GST).
 

A sub-index tracking demand showed new business barely grew last month.

That, alongside a