Services sector growth at 4-month high

Manufacturing growth slowed to a 12-month low in December amid a softer increase in factory orders and production

- Rhik Kundu

Business activity gained momentum in December, driven by demand buoyancy in the services sector, rising to a four-month high during the month, even as manufacturing growth slowed. Output growth rose during the month as firms recruited additional workers, indicated an HSBC survey of 400 service providers.

The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 59.3 in December, up from 58.4 in November, 58.5 in October, and 57.7 in September. It has been above the 50-point threshold that distinguishes expansion from contraction for 41 straight months.

During December, there was a softer increase in cost burdens, though greater outlays on food, labour, and materials were reported as selling price inflation also eased during the month, the survey said.