Services sector exhibits sustained momentum in Q3 FY11: RBI

The Reserve Bank of India (RBI) today said that the services sector growth moderated during the third quarter in FY 11 led by deceleration across all sub-sectors except 'finance, insurance, real estate and business services'.
   
The `community, social and personal services' sub-sector decelerated sharply in 2010-11, reflecting the resumption of the fiscal consolidation process, the apex bank said in its Macroeconomic and Monetary Developments in 2010-11 survey released here.
   
"Nevertheless, the outlook for services sector remains positive," the RBI said.
   
Lead indicators of the services sector such as tourist arrivals and cell-phone connections have recorded a robust growth as per data available so far for 2010-11, the RBI said.
   
Commercial vehicles production, air cargo and passengers handled at domestic and international terminals also registered a higher growth indicating buoyant transport sector.
   
Leading indicators of construction activity showed a mixed trend with improvement in steel production and deceleration in cement, it said.