India's services sector PMI surges to 6-month high

NEW DELHI:

Growth in India’s services sector rose to a 6-month high in January on the back of a higher demand and better outlook ahead, according to an HSBC report released on Monday.

The HSBC India Services PMI was recorded at 61.8 in January, up from 59 in December. It is the highest since July 2023 when the PMI was 62.3. This is the 30th consecutive month of expansion in the services sector.

"India's services PMI rose to a six-month high in January. New business expanded at a faster pace and managers' expectation for future activity was strong," said Ines Lam, economist at HSBC.

Indian service providers received new business orders at a brisk pace which fuelled sales during the month, according to the report.

The data also showed an increase in services export orders with the leading customers being Australia, Brazil, China, Europe, the UAE and the US.

"The new export business index accelerated, signalling that India's services exports remained robust," Lam said.

The report further stated that the number of jobs created in January increased to a three-month high.


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