India’s January Services Activity Grows At Fastest Pace In Three Months
The Nikkei India Services Purchasing Managers’ Index rose to 51.7 last month from 50.9 in December.
India's services activity continued to expand in January driven by renewed increase in new business.
The Nikkei India Services Purchasing Managers’ Index rose to 51.7 last month from 50.9 in December, according to a statement by Markit. A reading above 50 indicates economic expansion, while a reading below 50 signals contraction.
While overall services activity and employment increased driven by the information and communication sector, the expansion remained below the long-run average, the statement by IHS Markit, which complies the survey said.
The recovery across India’s service sector continued during January, with growth in output picking up to the joint strongest since June 2017 as underlying demand conditions improved. That said, the overall performance of the service sector remained weaker than the long run growth trend.Aashna Dodhia, Economist At IHS Markit
Service providers expanded workforces for the fifth consecutive month in order to address the new business inflows and backlogs. The rate of job creation was fastest since September.
Input price inflation, which rose sharply in November, stabilised over the month falling below the long-run average. Despite that, costs rose enough for service providers to pass them on to consumers.
In comparison, manufacturing activity expanded in January but at a slower pace than in the previous month.
Composite Index Drops
India’s composite business activity index dropped to 52.5 in January from 53 in December as manufacturing production eased from its 60-month high.
“Overall, this was consistent with a modest improvement in operating conditions across the private sector as a whole,” the statement said.