Services sector growth lowest in 11 months

India’s services sector growth slowed to an 11-month low in December on weaker new work inflows and output with overall business sentiment falling to its lowest level in nearly three and a half years, according to data compiled by S&P Global on Tuesday.

- AUHONA MUKHERJEE

The HSBC India Services Purchasing Managers’ index (PMI), compiled by S&P Global, fell to 58 in December from 59.8 in November. The index had last been this low in January 2025, when it was 56.6.

The reading for December remained above the 50-mark, indicating expansion in activity. A reading below 50 signifies contraction. The headline figure has been in the expansion zone for the 53rd month running. “Rates of expansion in incoming new work and output eased to the slowest in 11 months, with companies refraining from recruiting additional staff,” said the survey.