India’s services sector witnessed pick-up in growth during the month of December, as demand buoyancy spurred sales, subsequently fuelling business activity. Job creation extended into a nineteenth successive month, while business optimism strengthened.
As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index jumped to 59.0 in December from 56.9 in November. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 58.5 in December as against 57.4 in November.
The report noted that the rise in total new business was supported by continued growth of international sales, amid higher demand from clients based in Australia, Canada, Europe, the Middle East and South America during December. Having eased since November, however, the rate of expansion in new export orders was modest and the softest since June.
On the inflation front, cost pressures receded further, reaching their lowest in nearly three-and-a-half years. Still, there was a quicker and solid upturn in selling charges. Further, services firms in India expect the strong demand momentum to carry forward to 2024 which, coupled with advertising and better customer relationships, underpinned upbeat forecasts for output. The overall degree of business optimism was strong and better than that seen in November.
