The seasonally adjusted India Services Business Activity Index stood at 58.1 in November, partially down from 58.4 in October.
India’s services sector activity grew at the second-fastest pace in more than a decade during November, driven by continued growth in new jobs and improving market conditions, a monthly survey said on Friday.
The seasonally adjusted India Services Business Activity Index stood at 58.1 in November, partially down from 58.4 in October. The November figure points to the second sharpest increase in production since July 2011.
The services sector saw an increase in production for the fourth consecutive month. In Purchasing Managers’ Index (PMI) parlance, a print above 50 indicates expansion while a score below 50 indicates contraction.
“NS Indian service sector recovery “Sales were extended to November with a strong recovery, enabling the second fastest growth in business activity in nearly ten and a half years,” said Poliana de Lima, economics associate director at IHS Markit.
While companies anticipate higher business activity volumes during the coming year, expansion is expected to be restricted by price pressures.
Average input prices among Indian service companies rose further in November, amid reports of higher fuel, labour, material, retail and transportation costs.
Meanwhile, the coronavirus pandemic and travel restrictions reportedly led to a further fall in international demand for Indian services. The survey said the latest decline in outside sales was the twenty-first in consecutive months, though the slowest in the period.
According to the survey, private sector activities in India continued to expand, taking the current sequence of growth to four months.
The composite PMI output index – which measures combined services and manufacturing output – rose from 58.7 in October to 59.2 in November, indicating the strongest increase since January 2012.
“Looking at the manufacturing and services sectors combined, the results are even more encouraging and bodes well for the economic performance so far in the third quarter of fiscal year 2021/22. With production growth accelerating significantly in November, private sector production expanded at the fastest pace since January 2012,” said Ms. Lima.
India’s GDP growth stood at 8.4% in the second quarter of 2021-22 and surpassed pre-COVID levels, official data showed on Tuesday.
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