Left Menu
Development News Edition

India's service sector activity growth hits 5-month high in Dec: PMI


India's service sector activity growth hits 5-month high in Dec: PMI

India's services sector activity gained momentum and touched a five-month high in December, supported by uptick in new business orders that boosted output as well as employment, a monthly survey showed on Monday. 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, after July.

"The news of sustained job creation, robust new order growth and a pick-up in business confidence suggest that expansion can be maintained in the early part of 2020," said Pollyanna de Lima, Principal Economist at IHS Markit. Survey members linked the rise to better market conditions and new business growth. Moreover, total sales expanded for the third consecutive month at the end of the year, and at the quickest pace since October 2016.

On the prices front, input costs increased further in December, with monitored firms citing higher charges for food, fuel, medical products and transport. "Worryingly, inflationary pressures intensified, with the fastest rise in input costs for almost seven years pushing output charge inflation to a 22-month high," the survey said.

On the employment front, driven by rise in new business orders, service providers continued to hire extra staff in December and employment increased for the 28th month in succession. The survey further noted that Indian services firms expect marketing efforts and favourable economic conditions to boost business activity during 2020. However, the overall level of positive sentiment remained below its long-run average.

Meanwhile, the Composite PMI Output Index that maps both the manufacturing and services sector, rose from 52.7 in November to 53.7, reflecting stronger rates of expansion in both the manufacturing and service sectors. "With manufacturing sector weakness also fading in December, what was anticipated to be a disappointing private sector performance for the third quarter of fiscal year 2019/20 is now looking brighter," Lima said.

Lima, however, noted that growth looks set to be sustained, but at an unspectacular rate, with the latest quarterly PMI Composite Output Index reading broadly in line with that recorded in the three months to September." PTI DRR ANS ANS

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

Studycat Donates Free Use of Its Children's Language Learning Apps Globally

 Global edtech firm Studycat Limited is donating a months free use, globally, of its award-winning Fun Series language learning apps teaching 3-8 year-olds EnglishChineseSpanishFrench and German. This expands on Stu...

Malaysia's Mahathir says Parliament will pick new PM

Kuala Lumpur, Feb 27 AP Malaysias interim leader Mahathir Mohamad on Thursday said Parliament will pick a new prime minister next week following the collapse of the ruling alliance and that snap elections will be called if the vote ends in ...

Pak's fresh bid to combat terrorism allows US to expand trade ties bilaterally and regionally: Ross

Pakistans fresh efforts to fight terrorism and promote security is affording the US to expand trade between the two countries and in the region, Commerce Secretary Wilbur Ross has said after meeting the countrys top leadership here. Ros...

Climate campaigners win appeal against new Heathrow runway

London, Feb 27 AFP Britains Court of Appeal on Thursday ruled in favour of green campaigners who oppose a third runway at Londons Heathrow airport, Europes busiestThe court said the UK government that had given the Heathrow extension the gr...

Give Feedback