Services PMI at 3-month high in December
BANGALORE: India’s services sector grew at its strongest pace in three months during December, as company order books filled at the quickest rate since last February, a survey by the HSBC services Purchasing Managers Index ( PMI) showed on Friday.
Services ranging from banks to restaurants make up 60% of India’s economic output and a recovery brightens the outlook for Asia’s thirdlargest economy. The sector has been the lone bright spot in a slowing economy.
The survey of around 400 companies rose to 55.6 in December from November s 52.1.
The 50 mark separates growth from contraction and the index has held above that level for over a year now.
“The service sector provided some holiday cheer with activity fully recovering after two months of deceleration led by a sharp rise in new business,” said HSBC economist Leif Eskesen.
The new business subindex j umped to 57.1 i n December from 54.9 in the previous month.
While there is strong overseas demand for Indian services the big questions remain about major export markets.