PMI Service: Good news for Indian economy, PMI service increased due to increase in business activities.
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PMI Service: Services sector activity in India reached a three-month high in December on the back of favorable economic conditions and positive demand. This information has been given in a monthly survey. The seasonally adjusted HSBC India Bharat Services PMI business activity index reached 59 in December. It was at 56.9 in November. In the language of Purchasing Managers’ Index (PMI), a score above 50 means expansion in activities and a score below 50 means contraction. The survey is based on responses to a questionnaire sent to about 400 companies in the services sector.
HSBC Chief India Economist Pranjul Bhandari said that India’s services sector remained at a high level at the end of the year. This became possible due to increase in business activities and receipt of highest number of orders in three months. The increase in new business was supported by continued growth in international sales. Service providers saw high demand in December from customers located in Australia, Canada, Europe, the Middle East and South America. The survey said a surge in demand led to a pick-up in sales, which led to a pick-up in business activity. Job creation increased for the 19th consecutive month. Meanwhile, HSBC India Composite PMI Output Index increased to 58.5 from 57.4.
S&P said that cost pressure has reduced significantly and has reached the lowest level in three and a half years. Nevertheless, there has been a significant and strong increase in sales charges. December PMI indicated notable output growth, the highest since September. Despite lower data in October and November, the latest quarterly average is the lowest since the fourth quarter of fiscal year 2022-2023. Favorable economic conditions and positive demand trends were the main drivers of production growth. In December, the inflow of new businesses not only increased but also reached its highest point in three months. The increase in total new business was driven by continued growth in international sales. However, the rate of expansion in new export orders, which had been declining since November, was modest and the least vigorous since June.
,with language input,
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