HSBC India services PMI hits 61.8 in January
From 59.0 in December, the HSBC India Services Purchasing Managers’ Index (PMI) climbed to a six-month high of 61.8 in January.
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January recorded the most robust expansion in India’s dominant services sector during the six months on account of strong demand. The fastest growth in new business since last July, resulting from strong demand from both domestic and external clients, further solidified the upturn.
From 59.0 in December, the HSBC India Services Purchasing Managers’ Index (PMI) climbed to a six-month high of 61.8 in January. The services PMI is an indicator, compiled by S&P Global, which measures changes in services activity in the country as compared to the previous month. A score over 50 indicates an uptick in service activity, whilst a reading below indicates a decrease in service activity.
During January, new business placed with Indian service providers grew at the fastest rate in six months. Sales were reportedly boosted by advertising, positive demand trends and new client wins.
Ines Lam, Economist at HSBC, said, “India’s services PMI rose to a six-month high in January. New business expanded at a faster pace and managers’ expectations for future activity were strong. The new export business index accelerated, signalling that India’s services exports remained robust.”
According to S&P Global, during January, new business with Indian service providers grew at the fastest rate in six months. It said, “Underlying data also showed a notable upturn in new export orders at Indian service providers in January, the strongest in three months.” The firms reported gains from clients across the globe, including Afghanistan, Australia, Brazil, China, Europe, the UAE and the US.
The manufacturing PMI was recorded at a four-month high of 56.9 in January, according to data released last week. With manufacturing activity expanding at the fastest pace in four months and services industry growth remaining robust, the overall HSBC India Composite PMI Output Index rose to a six-month high of 61.2 in January, from 58.5 in December.