Services growth rises to 4-month high in Dec

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.

- Rhik Kundu

NEW DELHI:

Output growth increased 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.