India’s services sector activity returned to growth in the month of November, accompanied by a renewed rise in new business intakes, faster job creation and strengthening business confidence. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index bounced back to 52.7 in November from 49.2 in October. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services – also rose to 52.7 in November from 49.6 in October.
The modest expansion of services activity was achieved by growth in three of the five categories monitored by the PMI survey, namely Consumer Services, Information & Communication and Real Estate & Business Services. However, activity fell at Transport & Storage and Finance & Insurance firms. Further, overall volumes of incoming new work increased to the greatest extent in four months, following a stabilisation in October, while better demand conditions spurred higher sales in November.
As per report, employment continued to increase in November. Although moderate, the pace of job expansion accelerated to a three-month high and was in line with the long-run series average. But, input prices surged solidly in November, with the rate of inflation quickening to a 13-month high, on the back of rising food, fuel and medicine prices. Concurrently, average prices charged for the provision of services in India increased only slightly and at the weakest pace since July.
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