New Delhi, December 3 (IANS). A sharp increase in new business was effective in boosting output growth and provided a significant boost to India’s services activity in November, according to the HSBC India Services Purchasing Managers’ Index (PMI) survey released on Wednesday by S&P Global.
The HSBC India Services PMI Business Activity Index rose to 59.8 in November from 58.9 in October, showing a significant historical expansion in output.
HSBC Chief India Economist Pranjul Bhandari said, “Output growth picked up as new business started, and the India Services PMI business activity index rose to 59.8 in November. Employment growth was modest and most companies reported no changes in payroll numbers. Meanwhile, India’s composite PMI remained strong, although it declined slightly to 59.7 in November, which was driven by factory output. Shows lack of growth.”
According to the report, in fact demand for Indian services remained strong, which is evident from the increase in new business. This rate of growth was faster than the previous month in October and also higher than its long-run average.
On the other hand, there was a slight increase in new export orders during the third quarter. The rate of growth was good, but fell to the lowest level in eight months.
While external sales increased, companies in Asia, Europe and the Middle East reported profits.
According to the information given in the report, Indian services companies have indicated a slight increase in their expenses, in which expenditure on electricity, food, rent and software subscription has been reported to have increased. However, the inflation rate has fallen to its lowest since August 2020 and is below its long-term average.
The report said companies are still expected to see output growth with positive sentiment driven by good demand, greater social media presence, marketing initiatives and plans to keep price increases to a minimum.
–IANS
SKT/