In line with a bit slower growth of manufacturing sector, India’s services sector activity also fell in month of December, as growth of new work and activity moderated from November’s recent high. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index slipped to 53.2 in December from 53.7 in November. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- too eased to 53.6 in December from 54.5 in November.
According to the report, during the reported month, Information & Communication remained the strongest performing category, posting the quickest increases in both new business and activity, while Real Estate & Business Services was the only segment to record contractions. Further, the accumulation in backlogs eased to the weakest in five months, with employment growth accelerating to the second quickest pace seen since last April.
On the price front, input cost inflation softened at services firms for the third straight month to the weakest since May 2017, however service providers lifted their charging prices again in the reported month. Meanwhile, business sentiment regarding the 12-month outlook for activity at service providers strengthened in December, boosted by advertising efforts, new service offerings and predictions of an improvement in market conditions after the elections.