India’s services sector growth eased in the month of January but signalled an eighteenth successive monthly rise in output, amid favourable demand conditions and ongoing increases in new work. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index eased to 57.2 in January from 58.5 in December. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- fell to 57.5 in January from 59.4 in December.
The report noted that new orders placed with services companies continued to increase at the start of the fourth fiscal quarter. The rise took the current stretch of monthly expansions to a year-and-a-half and was sharp, despite slowing from December. The rise in total new business was centred on the domestic market, as international orders decreased. The fall was only marginal, but compared with the strongest upturn for almost three-and-a-half years in December.
According to the report, services companies faced a further increase in their expenses during January, which they attributed to higher costs for a wide range of materials, food and staff. Whilst remaining above its long-run average, the rate of inflation softened to a two-year low. Similarly, prices charged for the provision of services rose at a softer pace in January. The latest rise was the slowest since March 2022 and below the average seen since the survey started in December 2005.
