India’s service sector hits six-month high in December 2022; details here

The growth of the Indian services sector reached a six-month high in December 2022 with the aid of a strong intake of new business and positive market conditions. The S&P Global India Services PMI Business Activity Index increased from 56.4 in November to 58.5 in December after being seasonally adjusted, reflecting the fastest rate of growth since mid-2022, data released on 2 January revealed. The overall figure was above the neutral 50 thresholds for the 17th consecutive month, as per a Mint report. A score above 50 on the Purchasing Managers’ Index (PMI) indicates expansion, while a number below 50 indicates recession. Even though the emergence of new businesses and positive sentiment continued to boost job creation, there were some sectors where resources appeared to be sufficient to meet demands at the time. In December, business confidence was supported by forecasts for further increases in demand and marketing strategies. While business sentiment was at its lowest point in three months, it was still higher than average over the long term. Overall confidence was tempered by competitive pressures and inflation concerns. As explained in the private survey, more employment was generated, and businesses continued to have a positive outlook for the coming year’s business activity. Due to a dramatic increase in business expenses, including higher costs for labour, food, energy, and transportation, service prices have also climbed. Though strong inflows of new work put a strain on capabilities, December figures indicated that outstanding business had only slightly increased. The most recent uptick in backlogs extended the period of accumulation to a year, and the growth rate accelerated from November. Meanwhile, the manufacturing industry in India had a successful year in 2022, with output growth rising from 55.7 in November to 57.8 in December. The seasonally adjusted S&P Global India Manufacturing PMI demonstrated a significant improvement in the stability of the sector, which was the best observed since October 2020. S&P Global compiles the S&P Global India Services PMI using data from questionnaires distributed to a panel of about 400 service-sector businesses. Based on contributions to GDP, the panel is stratified by detailed industry and workforce size. The collection of data started in December 2005. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.