New Delhi, Dec 5 (KNN) According to a business survey by IHS Markit, the growth in services industry has slowed down in November due to slump in foreign and domestic demand caused of Goods and Services Tax.

The survey showed that the new business sub-index, a proxy for both foreign and domestic demand, slumped to 48.3 last month from October's 51.5.

The November's Nikkei/IHS Markit Services Purchasing Managers' Index (PMI) fell to 48.5 from 51.7 in October which is its lowest since August.

The survey also showed that the factory activity expanded in November at the fastest pace since demonetization but composite PMI, which takes into account both manufacturing and services activity, fell to 50.3 in October from 51.3.

Aashna Dodhia, an economist at IHS Markit in a press interview said that the Goods and Services Tax had led to slump in demand and lower customer turnout in the country and the recent growth in manufacturing sector in November had been offset by downturn in services sector.

She added that the cost pressures due to GST could cause slump in the Output growth in the near-term. (KNN/AG)