India's services sector experienced a robust expansion as the year concluded, driven by strong demand dynamics, according to the latest data from S&P Global released on Monday.
The HSBC final services Purchasing Managers' Index (PMI) rose to 59.3 in December, up from 58.4 in November. A reading above 50 signifies growth in the sector. The initial estimate was at 60.8.
New orders increased at the fastest rate in four months, reflecting a vigorous demand environment. Within various sub-sectors, the finance and insurance sectors recorded the most significant growth in new business and overall activity.
Regarding pricing, input price inflation moderated in December from the 15-month peak seen in November. Though output price inflation remained above its long-term average, it decelerated compared to the previous month.
Looking forward, service companies maintained a positive outlook on output expectations for the coming year, buoyed by expanded capacities, increased customer inquiries, and budget allocations for marketing initiatives.
The surge in new business, favorable projections, and pressure on capacity prompted firms to boost their workforce in December, albeit at a slower pace compared to November. The composite output index rose to 59.2 in December from 58.6 in November, signaling a continued robust expansion within India's private sector.
