India's service sector recovery weakens in November: PMI

However, the sector reported the first rise in employment for nine months.

Moreover, the overall level of positive sentiment climbed to the highest since February amid predictions that market conditions would normalise once a vaccine for the coronavirus disease 2019 (Covid-19) is rolled out.

Accordingly, the seasonally adjusted India Services Business Activity Index reading remained above the critical 50 mark that separates growth from contraction for the second month in a row during November.

Despite falling from 54.1 (index reading) in October to 53.7 (index reading) in November, the latest reading was still indicative of a solid pace of expansion.

Companies that signalled output growth commented on better demand conditions and a relaxation of Covid-19 restrictions.

"New business inflows likewise rose for the second straight month and solidly, despite growth easing from October. According to survey participants, the increase in sales stemmed from a pick-up in demand, marketing efforts and the loosening of Covid-19 controls,"  the IHS Markit report said.

"Underlying data suggested that the upturn in total new work was driven by the domestic market, with new export orders decreasing sharply again in November."