Services sector records robust growth in Dec 2023

India’s services sector posted a robust growth in December 2023 on the back of strong demand and a positive outlook ahead, according to an HSBC survey.

Mumbai, Jan 5 (IAN) India’s services sector posted a robust growth in December 2023 on the back of strong demand and a positive outlook ahead, according to an HSBC survey.

The HSBC India Services Purchasing Managers’ Index compiled by S&P Global, shot up to 59.0 in Dec up from November’s 12-month low of 56.9.

That 50-mark in the survey is the threshold that separates growth from contraction.

“India’s services sector ended the year on a high note, with an uptick in business activity, led by a three-month-high new orders index,” said Pranjul Bhandari, chief India economist at HSBC.

Services firms expected the momentum to remain strong this year, indicated by an uptick in the future activity sub-index, compared to November’s four-month low.

However, the pace of hiring remained subdued during the month although it was higher than the preceding month.

Firms got some respite due to lower inflation which slowed the rise of operating costs. They also passed on extra costs to customers at a quicker pace which reflects higher profits.

Although the manufacturing sector index released on Wednesday fell to 54.9 in December, strong services activity has raised the overall HSBC India Composite PMI Output Index to 58.5, the highest in three months.