India`s services sector sees faster growth in December at 59.3
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India’s services sector witnessed a faster growth in the month of December, as demand buoyancy continued to drive new business inflows higher, which in turn supported output growth and prompted firms to recruit additional workers.
According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 59.3 in December from 58.4 in November. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also grew to 59.2 in December as against 58.6 in November.
The report noted that buoyant underlying demand was identified by companies as the primary factor behind output growth. Not only did new orders increase for the forty-first month in a row, but also to the greatest extent since August 2024. On the price front, there was a softer increase in cost burdens, while selling price inflation likewise eased in December.
Further, service providers remained confident that output would increase over the course of the coming 12 months. The overall level of positive sentiment fell from November's six-month high, but remained above its long-run average. Expanded capacities, new customer enquiries and budget allocation towards marketing were some of the tailwinds cited by firms.
