Services sector growth hits 3-month high in December: HSBC index

NEW DELHI: India’s services sector expanded further in December — registering the fastest pace of growth in three months — driven by a sharp rise in new business orders, an HSBC survey said.

The HSBC’s Services Purchasing Managers Index (PMI) for December stood at 55.6, up from 52.1 in the previous month, signalling a sharp expansion in activity.

“The services sector provided some holiday cheer with activity fully recovering after two months of deceleration, led by a sharp rise in new business,” HSBC Chief Economist for India and ASEAN Leif Eskesen said.

The index had witnessed a significant decline in the previous two months — October and November. It had registered the fastest pace of growth in the seven months till September.

The index has remained above the 50-mark which indicates expansion since November 2011.

Going forward, service providers in India are optimistic about the business outlook. Around 46 per cent of monitored companies expect overall activity to increase this year, and anticipate higher demand, launch of new projects and increased advertising, HSBC said.