iconimg Wednesday, July 08, 2015

Reuters
Bangalore, January 04, 2013
India’s services sector grew at its strongest pace in three months during December, as company order books filled at the quickest rate since last February, a survey by the HSBC services Purchasing Managers Index (PMI) showed on Friday.

Services  ranging from banks to restaurants make up 60% of India’s economic output and a recovery brightens the outlook for Asia’s third-largest economy. The sector has been the lone bright spot in a slowing economy.

The survey of around 400 companies rose to 55.6 in December from November s 52.1.

The 50 mark separates growth from contraction and the index has held above that level for over a year now.

“The service sector provided some holiday cheer with activity fully recovering after two months of deceleration  led by a sharp rise in new business,” said HSBC economist Leif Eskesen.

The new business sub-index jumped to 57.1 in December from 54.9 in the previous month.

While there is strong overseas demand for Indian services the big questions remain about major export markets.