New Delhi: India’s services sector growth expanded to a 12 month high in January 2013, according to the HSBC Purchasing Managers’ Index (PMI), which stood at 57.5. The index stood at 55.6 during December 2012. The HSBC India Composite Output Index for manufacturing and services stood at 56.3 in January 2013.
The services sector contributes nearly 60 per cent of India’s economic output. The growth in the sector was driven by an increase in new business orders.
The private sector employment activity also increased for the 11th month running, highlighted the report.
“Service sector activity continued to pick up pace, led by the faster inflow of new business,” as per Mr Leif Eskesen, Chief Economist for India & ASEAN, HSBC.
Growth in the sector has continued for 15 successive months and the services firms in India remained positive regarding activity levels in the upcoming year, with around 42 per cent of services companies predicting overall activity at their units to increase.
Input prices at private sector companies in India rose for the 46th consecutive month during January 2013.
The Reserve Bank of India (RBI) has reduced the interest rates on January 29, 2013 for the first time in nine months, a move to boost economic growth by easing fund flow to perk up consumption and investment demand.
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