Services PMI signals December performance was a three-month high
The Hindu
India's services sector rebounds in Dec, new business & output rise fastest in 3 months; 19th straight month of fresh hiring.
India’s services sector rebounded in December with new business and output rising at the fastest pace in three months, as per the HSBC India Services Purchasing Managers’ Index, which rose from 56.9 in November to 59 last month. A reading of 50 on the index indicates no change in activity levels.
New services sector jobs continued to rise in December, marking the 19th straight month of fresh hiring, albeit at a slightly stronger pace than November with firms opting to recruit a mix of part-time and full-time workers.
Fresh export orders for Indian services firms grew at the slowest pace since June 2023, with demand seen from regions like Australia, Canada, Europe, the Middle East and South America.
Business optimism levels, however, improved from November levels, with the pace of rise in input costs slipping to a 40-month low. At the same time, firms continued to pass on cost burdens to their clients with output charges rising at a pace that was faster than input costs’ inflation and well above its long-run average.
With the latest reading of the PMI, the October to December 2023 quarter recorded the lowest quarterly average since the final quarter of 2022-2023. This was attributed to weaker index levels of 58.4 in October and 56.9 in November. Outstanding business volumes rose slightly in December compared to November, but this reflected the fastest uptick in four months.
“India’s services sector ended the year on a high note, with an uptick in business activity, led by a three-month high new orders index. Input costs rose at a slower pace than in November, continuing the softening trend which began in mid-2023,” said Pranjul Bhandari, chief India economist at HSBC.
The high Services PMI reading for December lifted up the overall private sector activity levels, despite manufacturing activity slipping to an 18-month low as per its sectoral PMI released on Wednesday.
CBIT and Customs clarify that reports on GST rate hike are premature and speculative, pending final recommendations from GoM.
Titan's Tanishq aims for double-digit growth in diamond jewelry sales in India, partnering with De Beers for promotion.
Sensex and Nifty rise for third day, led by blue-chip stocks; global markets show firm trends.
Digital Naukri is the fourth prize challenge by The/Nudge Institute in a series of grand challenges that focus on scalable solutions for complex livelihood challenges, ensuring urgency and a sharp focus on supporting the vulnerable segments of society.
Rupee hits all-time low against US dollar due to Trump's tariff threat, geopolitical tensions, and foreign outflows.
Stay informed with the latest updates from The Hindu’s updates on Sensex and Nifty
RBI reports significant decline in circulation of ₹2,000 banknotes since withdrawal announcement in May 2023.
The United States on Monday launched its third big crackdown in three years on China’s semiconductor industry.
Intel CEO Pat Gelsinger has retired, the struggling chipmaker said Monday.
Bangladesh reduces power purchase from Adani due to lower winter demand and payment disputes, facing mounting dues.
Škoda Auto India introduces the Kylaq SUV with four variants, starting at ₹7.89 lakh, promising a game-changing customer experience.