In the onset of 2019, the surge in the service sector has cooled down. This increment in the industry has been recorded as a minor upturn since last year, as reported by a survey.
A report named HIS Markit Services Purchasing Managers Index showed that there is a three-fold fall in January, accounted as 52.2. However, the number has not spiked down below 50 markers, in turn, segregating business growth against a contraction in the following eighth month. (source: ET news)
Pollyanna De Lima, the principal economist at IHS Markit report, said that there is some sign that growth may run out of steam, in the short-term at least, as seen by the weakest improvement in demand for four months and relatively subdued optimism, as reported by ET news.
After examination, it has been deduced that the emergence of new work is the primary cause of slow-down. As a result, companies have been witnessing a meagre increment on sales, which are the weakest in the last quarter.