Indian Economy News

Buoyant demand pushes India's services PMI to a 6-month high in January

  • IBEF
  • February 6, 2024

In January, robust demand from domestic and international clients propelled India's dominant services sector to a six-month high, with the Purchasing Managers' Index (PMI) rising from 59 to 61.8, according to an S&P Global and HSBC survey. This upturn, marked by the fastest increase in new business since July, extended the PMI's streak above the 50-mark for 30 consecutive months, indicating sector expansion.

Despite increased expenses at the start of 2024, particularly in food, labor, and freight, companies opted to keep charges unchanged. With only 6% opting for an increase, output prices rose to the lowest extent in 11 months. Consumer services led to the rise in input costs, and the quickest increase in selling prices was observed in transport, information, and communication. Economist Ms. Ines Lam at HSBC highlighted the strong expansion of new business, robust services exports, and optimistic managers' expectations for future activity, reflecting gains from clients globally.

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