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NEW DELHI: Activity in the country’s services sector slowed a tad in January compared to December’s 6-month high expansion but remained strong on the back of new business, a survey showed on Friday.
Posting 57.2 reading in January, the S&P Global India Services PMI signalled an eighteenth successive monthly rise in output. Despite falling from 58.5 in December, the latest figure remained above its long-run average (53.5) and indicated a sharp rate of growth. The survey is compiled from responses to questionnaires sent to a panel of around 400 service sector companies.
The country’s services sector has rebounded strongly after the lifting of Covid-19 curbs and is seen as crucial for supporting overall growth against the backdrop of a slowing global economy. The rise took the current stretch of monthly expansions to a year-and-a-half and was sharp, despite slowing from December. According to panel members, favourable economic conditions, accommodative demand and marketing efforts supported sales.
“As seen earlier in the week from the manufacturing PMI results, growth across the service sector lost some momentum at the start of the year. Yet, the survey showed us that service providers received high amounts of new business which helped keep the overall rate of growth historically prominent. Demand resilience in turn meant that output also continued to expand at a generally strong pace,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
Underlying data suggested that the rise in total new business was centred on the domestic market, as international orders decreased. The overall level of positive sentiment fell to a six-month low as the vast majority of panellists (80%) forecast no change in activity from current levels.
Posting 57.2 reading in January, the S&P Global India Services PMI signalled an eighteenth successive monthly rise in output. Despite falling from 58.5 in December, the latest figure remained above its long-run average (53.5) and indicated a sharp rate of growth. The survey is compiled from responses to questionnaires sent to a panel of around 400 service sector companies.
The country’s services sector has rebounded strongly after the lifting of Covid-19 curbs and is seen as crucial for supporting overall growth against the backdrop of a slowing global economy. The rise took the current stretch of monthly expansions to a year-and-a-half and was sharp, despite slowing from December. According to panel members, favourable economic conditions, accommodative demand and marketing efforts supported sales.
“As seen earlier in the week from the manufacturing PMI results, growth across the service sector lost some momentum at the start of the year. Yet, the survey showed us that service providers received high amounts of new business which helped keep the overall rate of growth historically prominent. Demand resilience in turn meant that output also continued to expand at a generally strong pace,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
Underlying data suggested that the rise in total new business was centred on the domestic market, as international orders decreased. The overall level of positive sentiment fell to a six-month low as the vast majority of panellists (80%) forecast no change in activity from current levels.
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