BENGALURU, Dec 5 Reuters India39;s dominant services sector stayed strong in November but expanded at its slowest pace in a year as demand softened despite cooling inflationary pressures, a private survey showed.

The SP Global India Services Purchasing Managers39; Index fell to 56.9 in November from October39;s 58.4, below all expectations in a Reuters poll which predicted a more modest dip to 58.0.

That marked the slowest pace of expansion since November last year, but the index remained firm and has been above the 50mark that separates growth from contraction since August 2021.

The services sector accounts for over 50 of India39;s gross domestic product GDP.

The Indian economy grew 7.6 in the JulySeptember quarter, supported by government spending and manufacturing. India remained the fastest growing major economy and outstripped the Reuters poll expectation for a 6.8 expansion.

However, the PMI39;s new business subindex a key gauge of demand fell for a second month and was its lowest in a year in November. An index measuring international demand fell to a fivemonth low.

India39;s service sector has lost further growth momentum … but we continue to see robust demand for services fuelling new business intakes and output, noted Pollyanna De Lima, economics associate director at SP Global.

The current rates of expansion look very healthy when considering their respective longrun averages and the outlook for business activity remains bright in spite of optimism…