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India’s services PMI strengthen further; soars to 53.7 in November

05 Dec 2018 Evaluate

Amid an upsurge in demand, India’s services sector activity strengthen further in month of November. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 53.7 in November from 52.2 in October. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- too improved to 54.5 in November from 53.0 in October.

The survey report found that inflows of new work expanded at a pace not seen for over two years. Further, information & Communication led the increases in, while Real Estate & Business Services was the only category to not see expansion. Besides, Indian service providers continued to add to their payrolls, stretching the current sequence of expansion to 15 months. But, job creation in the manufacturing sector was weaker than recorded in its service counterpart.

On the price front, input cost inflation moderated to a seven-month low, but service providers lifted their selling prices again in the reported month, amid a healthier demand environment. Meanwhile, business sentiment at service providers strengthened in November, boosted by predictions of gradual improvements in market conditions. Likewise, optimism was higher in the manufacturing economy, lifting private sector confidence from October’s 20-month low.


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