New Delhi, Mar 6 (KNN) The service sector in the country experiences contraction in the month of February amidst rising price pressures leading to a slowed demand and business orders, a private report indicated.

The Nikkei India Services Purchasing Managers’ Index slipped to 47.8 in February, from 51.7 in January, as business didn’t turn out well for the sector. A number below 50 indicates a contraction state.

Commenting on the latest number, Aashna Dodhia, Economist at IHS Markit in a press interview said that the February data suggests that both activity as well as new work declined for the first time since the 2016 November, during which demonetisation was being seen as a reason.

The survey further informed  that prices rose at their fastest pace in seven months after a sharper hike in input costs.

This also led to the trickling down effect, forcing firms to push down inflationary pressure to customers.

The figure stands crucial especially when the recent economic trend suggested a rebound, indicating a 7.2 per cent figure in the previous quarter.

According to various reports, service sector contributes to over 60 per cent to the country’s economy and is also a massive job provider. (With Inputs from a news report) (KNN/DA)