Indian services sector ends ’24 strong – PMI
India’s services sector finished 2024 with robust growth, driven by strong demand and rising new business inflows, according to the HSBC India Services PMI survey released on Monday. December’s seasonally adjusted Business Activity Index rose to 59.3, up from 58.4 in November, marking the fastest expansion in four months.
Key Highlights:
- New Orders Surge: Orders increased for the 41st consecutive month, led by finance and insurance sectors, reaching their highest level since August 2024.
- Job Creation: Firms continued hiring, though at a slightly slower pace than November.
- Eased Cost Pressures: Input cost inflation softened, with slower increases in food, labour, and material costs, while selling price inflation also moderated.
The HSBC India Composite Output Index, which tracks both manufacturing and services, rose to 59.2 in December, driven by services growth even as manufacturing slowed.
2025 Outlook
Service providers remain optimistic about growth, citing expanded capacities, increased customer inquiries, and enhanced marketing efforts. However, rising backlogs and moderate growth in international orders may pose challenges.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser
