India’s Services Sector Sees Strongest Expansion Rate In Dec, Check PMI Data Here
Service providers also hiked their own fees in December citing a jump in input costs. The rate of charge inflation remained above its long-run trend in the month.
India’s services activity jumped to 59.3 in December 2024. The seasonally adjusted HSBC India Services Business Activity Index recorded the strongest rate of expansion in four months. In comparison, the services PMI stood at 58.5 in October and 58.4 in November. The data showed that the Indian services companies ended 2024 on a robust note.
The survey, conducted by S&P Global, found demand buoyancy remained strong and continued to drive new business inflows higher. This, in turn, led to output growth and encouraged firms to bring on additional workers.
With regards to prices, cost burdens increased softly, even as survey respondents continued to clock greater outlays on food, materials, and labour. The study noted that selling price inflation also eased in December.
New orders increased for the forty-first consecutive month and the pace of increase was also the greatest since August 2024. Amongst the sub-sectors, finance and insurance clocked the strongest rise in both new orders and business activity.
Service providers also hiked their own fees in December citing a jump in input costs. The rate of charge inflation remained above its long-run trend in the month.
Ines Lam, Economist, HSBC, said, “India’s services companies expressed strong optimism in December as business activity growth surged to a four-month high. Forward-looking indicators such as new business and future activity suggested that the strong performance will likely continue in the near future. The easing of input price inflation in the month also supported business sentiment. Strength in the services PMI stands in contrast with the growing signs of a slowdown in the manufacturing industry.”
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The service providers remained optimistic that output would increase over the span of 12 months going ahead. The overall level of positive sentiment declined from November's six-month high, however, it remained above the long-run average. "Expanded capacities, new customer enquiries and budget allocation towards marketing were some of the tailwinds cited by firms," the survey said.
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