Services sector zooms to 3-mth high in Dec

New Delhi: The services sector growth in India rose to a three-month high in December supported by favourable economic conditions and positive demand trends, a monthly survey said on Friday.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 56.9 in November to 59 in December, highlighting a sharp increase in output that was the most pronounced since September. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction. The survey is compiled from responses to questionnaires sent to a panel of around 400 service sector companies.

“India’s services sector ended the year on a high note, with an uptick in business activity, led by a three-month high new orders index,” said Pranjul Bhandari, Chief India Economist at HSBC. The rise in total new business was supported by continued growth of international sales. Service providers noted higher demand from clients based in Australia, Canada, Europe, the Middle East and South America during December. “Demand buoyancy spurred sales, subsequently fuelling business activity. Job creation extended into a 19th successive month, while business optimism strengthened,” the survey said.