Is the economic rebound from demonetisation running out of steam?

The Nikkei India Composite Purchasing Managers Index, a gauge of private sector economic activity in manufacturing and services, fell to 51.3 in April from 52.3 in March

A reading above 50 indicates expansion, but the rate of expansion has slowed. Graphic: Vipul Sharma/Mint
A reading above 50 indicates expansion, but the rate of expansion has slowed. Graphic: Vipul Sharma/Mint

The momentum in the services economy slipped in April. The Nikkei India Composite Purchasing Managers Index, a gauge of private sector economic activity in manufacturing and services, fell to 51.3 in April from 52.3 in March.

A reading above 50 indicates expansion, but the rate of expansion has slowed. “April PMI data for the Indian service sector shows how jittery the current economic environment is, igniting concerns among some businesses, despite remaining in growth territory,” said Pollyanna De Lima, economist at IHS Markit.