BUSINESS

Services PMI slips to 53.2 in December: Nikkei survey

Service sector activity expanded strongly in December, albeit with a marginally lower reading than in the previous month, according to the Nikkei India Services Business Activity Index.

“Despite falling to 53.2 in December, from 53.7 mid-quarter, the seasonally adjusted Nikkei India Services Business Activity Index pointed to an expansion in sector output that was among the strongest recorded in the past two years,” the report said. “The figure contributed to the highest quarterly average seen since Q4 FY 2015-16.”

Stronger demand

The report said that India’s service economy expanded on the back of strengthening demand. Although growth of new work and activity moderated from November’s four-month high, companies hired additional workers, it added.

“Service sector continued to enjoy positive levels of activity in December, with new business and employment remaining on an upward path,” Pollyanna De Lima, principal economist, IHS Markit, and author of the report, said. “However, except for jobs, rates of expansion slowed slightly to form a somewhat disappointing end to 2018.”

Recommended for you