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India’s services sector sees sharp growth in January; PMI at 61.8

05 Feb 2024 Evaluate

Stretching the current run of growth to two-and-a-half years, India’s services sector witnessed a sharp growth in the month of January, aided by the quickest increase in new business since last July, which stemmed from buoyant demand from domestic and external clients. Besides, new export sales rose at the fastest pace in three months.

As per the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 61.8 in January from 59.0 in December. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 61.2 in January as against 58.5 in December.

The report said that new business placed with Indian service providers increased at the fastest rate in six months during January. Advertising, positive demand trends and new client wins fuelled sales, while there was a notable upturn in new export orders at Indian service providers in January, the strongest in three months. 

On the inflation front, largely due to a substantial pick-up in cost pressures in the service economy, the aggregate rate of input price inflation quickened to a three-month high. That said, prices charged for Indian goods and services rose at the slowest rate in ten months.


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