Indian services sector sees fastest growth in 3 months in Jan: Nikkei PMI - Hindustan Times
close_game
close_game

Indian services sector sees fastest growth in 3 months in Jan: Nikkei PMI

Press Trust of India | ByPress Trust of India
Feb 05, 2018 12:40 PM IST

The seasonally adjusted Nikkei Services Business Activity Index improved to 51.7, above the neutral mark of 50 in January and up from 50.9 in December, signalling a faster expansion.

The Indian service sector grew in January, registering the fastest rise in activity in three months party due to renewed increase in new business orders, according to the monthly Nikkei Services Business Activity Index.

Indian service providers addressed new business inflows and rising backlogs by expanding workforces for the fifth consecutive month in January. Moreover, the rate of job- creation was the fastest since last September.(ABHIJIT BHATLEKAR/MINT)
Indian service providers addressed new business inflows and rising backlogs by expanding workforces for the fifth consecutive month in January. Moreover, the rate of job- creation was the fastest since last September.(ABHIJIT BHATLEKAR/MINT)

Even though growth rates for activity and employment accelerated since December, it remained weaker than their respective long-run survey averages.

Hindustan Times - your fastest source for breaking news! Read now.

The seasonally adjusted Nikkei Services Business Activity Index improved to 51.7 in January, up from 50.9 in December, signalling a faster expansion.

The index remained above the neutral mark of 50 in January, that separates growth from contraction for the second consecutive month. In November, the index stood at 48.5.

“The recovery across India’s service sector continued during January, with growth in output picking up to the joint-strongest since June 2017 as underlying demand conditions improved,” said Aashna Dodhia, economist at IHS Markit and author of the report.

Indian service providers addressed new business inflows and rising backlogs by expanding workforces for the fifth consecutive month in January. Moreover, the rate of job- creation was the fastest since last September.

In terms of prices, Dodhia said input cost inflation across the service sector remained weak by historical standards, although service providers were able to pass on a greater proportion of cost burdens to customers.

“Meanwhile, job-creation accelerated to the second strongest in over six-and-a-half years, but as firms struggled in receiving timely payments, the Goods and Services Tax (GST) continued to be a key constraint to businesses, and the service sector remained a laggard relative to its manufacturing counterpart,” Dodhia said.

Going forward, service sector companies in India remain optimistic regarding expected activity levels in 12 months’ time.

Meanwhile, manufacturing production growth eased from December’s 60-month high, and accordingly the Nikkei Composite Output Index fell to 52.5 in January from 53.0 in December.

“Overall, this was consistent with a modest improvement in operating conditions across the private sector as a whole,” the survey said.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, March 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On