Services PMI contracts as GST hits demand Services, the biggest sector of the Indian economy, contracted in November because of the goods and service tax (GST) affecting demand, shows the widely tracked Nikkei purchasing managers´ index (PMI). The PMI fell to 48.5 points in November from 51.7 in the previous month.The November reading is the lowest since August A reading above 50 points denotes expansion and one below that is contraction.This implies that the country´s growth story will take time to pick up significantly after economic expansion did rise to 6.3 per cent in the second quarter, from 5.7 per cent in the first one. Even then, the Reserve Bank of India might not cut its policy rate on Wednesday because input prices are rising.However, the employment situation gave relief as jobs rose in the services sector.“Business under performance emanated from the GST, which contributed to sluggish demand andalower customer turnout, according to an ecdotal evidence,” said Aashna