New Business Growth Hits 38-month High: IHS Markit India Services PMI

India Services Business Activity Index improves from 52.7 in November to 53.3 in December

The Indian services economy gained growth momentum in December, shrugging off the weakness recorded in September and October. A marked and accelerated upturn in new work intakes boosted growth of output and employment, whilst supporting an uptick in business confidence. Worryingly, inflationary pressures intensified, with the fastest rise in input costs for almost seven years pushing output charge inflation to a 22-month high.

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The IHS Markit India Services Business Activity Index improved from 52.7 in November to 53.3 in December, highlighting the second-strongest rate of increase in output in over a year (behind July). Survey members linked the rise to better market conditions and new business growth.

Total sales expanded for the third consecutive month at the end of the year, and at the quickest pace since October 2016. Where growth was recorded, panellists commented on improved business decisions at the managerial level, the offering of new services and better underlying demand.

Source: Business Standard

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