New Delhi: India’s services sector growth rose to a three-month high in December. The HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P revealed this.
As per data, the Services Purchasing Managers’ Index rose sharply to 59.0. This marks the 29th consecutive month of expansion. The index rebounded from November’s one-year low of 56.9. The figure had stood at 58.4 in October. The growth is still slower than in July, when India’s PMI was at 62.3. A reading of 50 separates expansion from contraction.
India’s services sector is one of the fastest growing in the world. It contributes to over 50% of India’s GDP. December saw higher demand for Indian services from clients based in Australia, Canada, Europe, the Middle East and South America.
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‘Services firms in India expect the strong demand momentum to carry forward to 2024 which, coupled with advertising and better customer relationships, underpinned upbeat forecasts for output,’ the survey said. The survey added that job creation in the service sector rose in December.
The HSBC Global India Services PMI is compiled from responses to questionnaires sent to about 400 service sector companies. The PMI data is an indicator of the health of the economy.
On 3 January, HSBC released its latest survey on India’s manufacturing PMI, which grew at its slowest pace in 18 months at 54.9 during December. The composite PMI, consisting the manufacturing and services indices, rose to 58.5 in December from 57.4 in November, indicating the sharpest expansion rate since September.
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