GST takes the sheen off services in August, too Introduction of the nationwide goods and services tax (GST) continued to be a drag on activity in the services sector in August, for a second month, with companies having to handle higher input prices and slow demand. The widely tracked Nikkei Purchasing Managers´ Index (PMI) showed a reading for the services sector of 47.5 in August.The 50 point mark separates expansion from contraction. However, the decline was softer than in the previous month of July, when the PMI had plunged toanearly fouryear low of 45.9. Last week, the latest gross domestic product (GDP) data showed a three year plunge in economic growth at 5.7 per cent in the first quarter of the current financial year. While PMI data for manufacturing rebounded in August, rising to 51.2 points from 47.9 in July, services´ providers continued to grapple with a slow down in new businesses.The entities surveyed blame this on sub dued demand and rising competitive pressures emana