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Services PMI at 3-month high in December

business Updated: Jan 04, 2013 22:07 IST
Reuters
services sector

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.