India’s service sector growth rebounded at the start of the year amid quicker rises in new orders and output, final data compiled by S&P Global showed on Tuesday.
The seasonally adjusted HSBC India Services PMI rose to 58.5 in January from 58.0 in December. The flash score was 59.3. A score above 50.0 indicates expansion.
Both output and new orders grew at faster rates in January, and the upturn in the latter was driven by demand buoyancy, new business gains, and tech investment.
The growth in sales was attributed to greater client interest in their services and a stronger online presence. New export orders grew at the fastest pace in three months, linked to new business gains from clients in Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand, and Vietnam.
In line with rising new orders, Indian service providers resumed hiring activity in January, though the pace of job creation was only marginal.
On the price front, input price inflation accelerated to a 4-month high in January, and selling price inflation was the strongest in three months.
Looking ahead, business confidence strengthened amid optimistic forecasts for efficiency gains, marketing efforts, and new client wins.
The composite output index rose to 58.4 in January from December’s 11-month low of 57.8, indicating that the latest sharp rate of expansion in the Indian private sector was boosted by stronger growth at goods producers as well as service providers.
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