Agencies
Bengaluru
India's pivotal services industry lost some momentum in September as demand weakened despite firms cutting prices for the first time this year, a business survey showed on Tuesday.
The Nikkei/Markit Services Purchasing Managers' Index eased to 51.3 in September from August's 51.8 but marked its third straight month above the 50-level that separates growth from contraction.
The prices charged sub-index slumped to a near 5-year low of 49.5 from 51.0 in August as falling commodity prices helped weaken input cost pressures.
Retail inflation cooled to a new low of 3.66 percent in August, prompting the Reserve Bank of India to cut its benchmark repo rate for the fourth time this year. It brought rates down to a 4-1/2 year low of 6.75 percent in September to spur demand and boost economic growth.
The government predicts growth of around 8 percent this fiscal year yet the central bank downgraded its growth estimates to 7.4 percent from 7.6 percent last week.
A sister survey last week showed India's manufacturing activity also slowed more than expected to a seven-month low.
