India’s Services Sector Rebounds in January as New Business Picks Up: PMI
India’s services sector showed renewed momentum in January after slipping to an 11-month low in December, supported by stronger demand and higher new business inflows, a private survey showed on Wednesday. The HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 58.5 in January from 58.0 a month earlier, marking the 54th straight month of expansion, though it was slightly below the initial estimate.
The recovery was largely driven by faster growth in new orders, aided by improved online presence and aggressive marketing by firms. Export demand also strengthened, with overseas orders rising at the fastest pace in three months, particularly from South and Southeast Asian markets such as Indonesia, Qatar, Sri Lanka and Vietnam. Economists noted that recent trade developments could further support services exports in the coming months.
Despite the pickup in activity, job creation remained weak. Employment returned to marginal growth after contracting in December, indicating near-stagnant hiring conditions. Meanwhile, cost pressures intensified, with input prices rising at the fastest pace since September, prompting firms to raise prices. Overall business sentiment improved, and the HSBC India Composite PMI rose to 58.4 in January from 57.8 in December, reflecting stronger combined momentum across services and manufacturing.
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